Upgrading the quality of your ride is always fun and periodically necessary. However, it is important to remember that every credit inquiry by an automobile loan provider can hurt your credit score.
Too much comparison shopping, in other words, can be detrimental to your needs if too many South Florida auto dealers are delving into your finances at the same time. That is why you should contact the credit repair professionals from True Credit Repair if your credit score takes a tumble while you are shopping for a new car, truck, SUV, RV, or motorcycle.
Here’s how the system works
When you apply for credit, you authorize those lenders to ask or “inquire” for a copy of your credit report from a credit bureau. Inquiries for new credit, like those provided by car dealers & banks to purchase vehicles, count toward your FICO scores. Typically, one credit inquiry will dock your FICO score by about 5 points. However, some customers seeking pre-approved car loans have reported that their scores have dropped as much as 50 points because of multiple inquiries into their credit by car dealers.
For customers in South Florida, the credit repair professionals from True Credit Repair can minimize the damage done to your credit scores by auto loans inquiries. We also can help with foreclosures, bankruptcies, tax liens, late payments, repossessions, collections, and much more.
Keeping Auto Loans Inquiries at Bay with TrueCredit.Repair
Based on individual credit histories, the impact of applying for credit can vary wildly from person to person. For perspective, the full range for FICO Scores is 300-850 and inquiries will have a greater impact on the score of someone with few accounts or limited credit history. Inquiries for car loans can make up as much as 10% of a FICO score for a first-time borrower seeking to find the lowest rate.
Typically, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. FICO scores are re-calculated at the conclusion of each 45-day span, meaning that a long-term car search — with multiple lenders pulling credit reports — can be far more harmful to your credit score than a short-term search. Once on your credit report, an inquiry related to a car loan will stay there for roughly 24 months.
When you think your credit status may be suffering while you are car shopping, contact True Credit Repair to keep the situation at bay.
Leave Your Auto Loans Credit Concerns to True Credit Repair in South Florida
Applying for a car loan can be tricky, especially for first-time applicants who do not understand the potential impact on their credit score. At True Credit Repair, we understand. We can also help our South Florida customers keep their credit status looking good despite multiple inquiries from lenders related to a car purchase. When you need our services, give us a call at 888-407-7747 or Contact Us online for more information.