Dinged my Credit - Please explain what happened.

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MemberSince99
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Postby MemberSince99 » Mon Nov 25, 2013 3:39 pm

DoingHomework wrote:Not having a bad day at all...

Inquiries stay on for 2 years. Yes, they have less score impact after a few months or a year as you say. But they will still be there for 2 years and will have some impact.

Honestly, I do pity the OP for having been duped by an old trick (see my other post). But the only harm is a lower score for a couple of years. It's not the end of the world. That would be a problem for some people but the OP has 10 times the credit available compared to what is needed (stated 10% utilization). That means there should be no need to apply for any more for 2 years. Two years is not that long.




They don't have any effect whatever on your score after 1 year. None. Zip zilch nada. Yes they are still visible but FICO states they do not affect the score after one year. Period. Not just a little bit, not a few points, not "some impact", that's not correct, after a year, they have NO impact on your score.


In practical terms, lenders seem to care little about inquiries older than a year, unless there is an extreme amount of them. 6 for an auto loan isn't extreme (though granted it sucks).


I think he's being given information here that really isn't the truth, and he doesn't have to not apply for anything for at least 2 years. I applied for a Fidelity and BofA card within 3 months of my auto loan hits and was approved for both. Currently those hits are on my reports but have ZERO impact on my score as that was September of last year.


I just think things should be stated correctly.


DoingHomework
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Postby DoingHomework » Mon Nov 25, 2013 5:15 pm

Yep, that's the way it works. They ding your credit so you have no options. If you still have the CU as an option then that is good.

Robrus1
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Postby Robrus1 » Tue Nov 26, 2013 8:39 am

I'm going to have to check my credit score now as I had a similar situation buying a new car last week. I got it for 8K off MSRP but then later on in the deal, come to find out that about half of that was only available through a rebate that you can only get if you get financed through Ford Motor Credit. They wouldn't tell me their rates until after they pulled my credit score, but they gave 3% and I didn't finance much, so I said ok. That sucks that they show up as 6 separate inquiries, I thought Equifax would group those together as one inquiry...if they pulled my score more than once, I'm going to go down there and raise some hell. My question is, why wouldn't Equifax understand the situation and group them together as one auto loan inquiry?
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

MemberSince99
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Postby MemberSince99 » Tue Nov 26, 2013 9:32 am

My solution to this issue is I'm going to line up financing BEFORE I go to the devilship, err dealership.


That avoids a whole lot of fun and games they can play right off the top. They will still try to sell that wax job for life (BS) for 500 dollars (you can get a 20 dollar bottle of wax and some towels and do it yourself and get the same results) and all that nonsense, but you can just say NO to that. I did.


They make more off selling that BS after you think the sale is done than they do on the car itself. The less they made on the car the harder they will push to make it for it with the Lienance I mean Finance Manager.


So I'm lining up my financing ahead of time in the future, then you make the deal they take the check you are done.

DoingHomework
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Postby DoingHomework » Tue Nov 26, 2013 10:39 am

MemberSince99 wrote:My solution to this issue is I'm going to line up financing BEFORE I go to the devilship, err dealership.


That avoids a whole lot of fun and games they can play right off the top. They will still try to sell that wax job for life (BS) for 500 dollars (you can get a 20 dollar bottle of wax and some towels and do it yourself and get the same results) and all that nonsense, but you can just say NO to that. I did.


They make more off selling that BS after you think the sale is done than they do on the car itself. The less they made on the car the harder they will push to make it for it with the Lienance I mean Finance Manager.


So I'm lining up my financing ahead of time in the future, then you make the deal they take the check you are done.


I have done that every time I bought a car for at least 20 years, although that has only been about 4 cars between my wife and I. Yes, they TRY the BS. But they had no chance against my wife and I. I have literally negotiated deals worth tens of millions of dollars for commercial contracts. The local car salesman or even the guy who owns the dealerships has been no match.

It's all about leverage and knowledge. Once they pull your credit several times you have no financing options except through them and they know that. As you said, arrange financing in advance with your bank and you avoid all that BS. They have leverage with rebates and such, and I have financed through dealerships to get those. But ONLY after getting a written commitment on interest rate before giving them any personal information besides my first name. They will of course lie to you and say they can't give you a rate without pulling credit. That is a complete lie. They can give you a rate contingent on having a certain FICO score. If they refuse, well, there are other dealers, auto brokers, and so forth.

Other tricks like walking off with a driver's license under the guise of needing a copy for insurance before a test drive can also be avoided - bring your own copy. Parking behind you to block you from leaving - park down the street. You get the idea. And pity the salesman that walks away from me to stall. I tell him he has 3 minutes to return. After that I start walking around looking. I've entered many private offices, and mechanics work areas. It gets their attention and he won't walk away again.

It's a war. Don't be afraid to apply guerilla tactics.

MemberSince99
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Postby MemberSince99 » Tue Nov 26, 2013 1:43 pm

I love your tactics.


Another one is if you are trading in they want your keys of course to check out your car. Making sure you don't get your keys back is part of their tactics as well.


With the new cards now, they have very expensive electronic keys that cost a couple of hundred to replace so while in the past you could simply tell them to kiss your @$$ and leave with the real set you brought after giving them a spare key, you don't want to do that now. Besides they have a sneaky habit of hiding your car even so.


You could of course call the cops but they generally don't want to get involved with things like that, though if you pulled that tactic on the devilship I bet they'd intervene and possibly haul you to jail, but when you are just a little worm in this system, no one cares if you take it up the rear end.


Another one they love to play is they have one of the employees call the salesman while he's at his desk with you, and what you hear goes like this: Hello? You mean that little red Camry out front? Why yes we still have it, but I have a gentleman here right now who is going to buy it. Can I take your number and call you back if he changes his mind?


I bet they laugh about those calls later over a few beers.


My outlook is like yours - I simply will not have my time wasted and I won't play their games. I'll walk and that's what they are most afraid of, because they know the odds say if you leave, you won't be back, and you will buy a vehicle at one of their competitors. That's the last thing they want. If my BS detector hits too high a level, I walk, with promises of how I'll be back I'm just going down the street to check on the vehicles at X dealership and I'll be right back as soon as I see what they can do. If they see you are serious, that usually cuts (at least temporarily) a lot of the BS.


It's for sure a game I tell ya.

GoCreditGo!
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Postby GoCreditGo! » Tue Nov 26, 2013 6:37 pm

I'm keeping this in mind when I get a car.

nvtech
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Postby nvtech » Wed Nov 27, 2013 6:09 am

MemberSince99 wrote:My solution to this issue is I'm going to line up financing BEFORE I go to the devilship, err dealership....So I'm lining up my financing ahead of time in the future, then you make the deal they take the check you are done.


I just did exactly the same. I have an approval from my CU. For a 25k car, I request only 8k as financing as I will be paying the rest as downpayment.

When the final numbers were zeroed in, its a straight 6k off from the dealer and the total price came to 19k + tax..

Here is where the bastards started saying I got to take the financing option through them else the deal is off..

And here is where the crooks dinged my credit which showed a 50 point drop.

With all what you said, it does make sense that I am not screwed completely. I hope everything on the Credit Reports kools down over a period of time.

nvtech
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Postby nvtech » Wed Nov 27, 2013 6:19 am

DoingHomework wrote:It's a war. Don't be afraid to apply guerilla tactics.


Good one !..My next car purchase for my wife...I am gonna strictly implement the Guerilla tactics ;-)



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