Nearly 50 Years Old and a Credit Newbie: Question on Hard Pulls

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OldMan
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Nearly 50 Years Old and a Credit Newbie: Question on Hard Pulls

Postby OldMan » Wed Mar 26, 2014 1:02 pm

I'm quickly approaching 50, and until recently, never had or used credit. I've always drove older cars that I worked on myself, and always paid cash/debit card for anything I needed.

Decided it was time to get my wife a new car finally, and in Feb we went and found a nice car that she liked at one of the local dealerships. Not having had any experience with credit before, I was completely unprepared for what followed. Needless to say, we had a fun time getting approved for financing.

After that experience, I decided to do a little research, (hind sight :\) and that led me to this site. I really enjoy the forums here, but can't seem to find the information I'm looking for. The dealership (due to me having no history) apparently ran me through 8 different loan places to find us a loan. I now have 8 hard pulls in a single day. Is this as bad as it sounds and appears on places like CK?

I've since been approved for my first ever credit card, (Cap One Secured) and I'm waiting for it to arrive. But in the meantime, I was just curious if all the hard pulls are as bad as they appear, and if so is there anything I can do about it?

Thanks.
My Wallet:
Discover IT - $4000;
AMEX BCE $12000;
Citi Double Cash - $6600;
CHASE AARP Visa - $5000;
Banana Republic $1200;
NFM - $20,000;
Sears (Citi) MC - $6000;


haikuginger
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Postby haikuginger » Wed Mar 26, 2014 9:00 pm

OldMan wrote:The dealership (due to me having no history) apparently ran me through 8 different loan places to find us a loan. I now have 8 hard pulls in a single day. Is this as bad as it sounds and appears on places like CK?

I've since been approved for my first ever credit card, (Cap One Secured) and I'm waiting for it to arrive. But in the meantime, I was just curious if all the hard pulls are as bad as they appear, and if so is there anything I can do about it?


It's not ideal, but it's not the end of the world. When a bank looks at your report to make a decision on whether to lend, they look it over holistically; you'll find that some issuers are more particular in certain areas than others. They'll be able to tell that all the inquiries happened for the same purpose, so it might not hurt you that badly in that way.

Also, I believe that the FICO score calculations take into account shopping around for loan rates for mortgages and car loans when all the inquiries are made in a certain period. If that's the case, having eight inquiries in one day shouldn't hurt you any more than just one.

Regardless, if you're just starting out, then it might be best to not seek any additional credit for a while anyway; use your CapOne secured card, and it should eventually convert to a normal one. Once that happens, you can look into applying for other options.

I'd wait until the CapOne has been reporting for at least six months before applying for more credit, regardless.

MemberSince99
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Postby MemberSince99 » Wed Mar 26, 2014 9:33 pm

Yeah I know how you feel the dealer stuck me for 6 hard pulls. Lesson learned: line up financing AHEAD of time, and refuse to allow them to pull your credit.


Truth is, they are supposed to count them all as one pull for scoring purposes and they did in my case but it still hacked me off.


haikuginger gave you good advice I have nothing else to add enjoy your vehicle and in about 7 months go for a nice prime credit card and then ditch the Cap One.

JoDa
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Postby JoDa » Wed Mar 26, 2014 11:05 pm

You *should* be able to argue that all those pulls were for *one* purpose. If you go to apply for other credit and they decline you for "too many inquiries" ask for reconsideration and explain you were "shopping around" for a car loan. The fact that you only took one of the offers and they were all for the same thing are on your side, as is the fact they all happened on the same day...or at least within the same week. You'll probably have to do a little 'splaining since the bureaus don't automatically consolidate them like if you were shopping for a mortgage, but I have full faith you can satisfactorily prove it was just loan shopping for *one* loan given what you've said.
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OldMan
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Postby OldMan » Thu Mar 27, 2014 6:06 am

Thanks for the replies and the advice. I'll make sure to follow it, and try and get another card in seven months then.
My Wallet:
Discover IT - $4000;
AMEX BCE $12000;
Citi Double Cash - $6600;
CHASE AARP Visa - $5000;
Banana Republic $1200;
NFM - $20,000;
Sears (Citi) MC - $6000;

takeshi
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Postby takeshi » Thu Mar 27, 2014 8:41 am

OldMan wrote:But in the meantime, I was just curious if all the hard pulls are as bad as they appear, and if so is there anything I can do about it?

Not really a big deal as outlined above and nothing you can do about it aside from chalk it up as a learning experience. As suggested, build your credit and have financing lined up next time. Depending on what offers you get it might or might not be worth your while to see what the dealer can do. I was approved for 0.99% when I was shopping earlier this year and I knew the dealer couldn't beat the APR or USAA's service. They also knew they couldn't so we didn't have them check and they didn't offer to run.

The effect of the HP's falls of relatively quickly as well.

OldMan
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Postby OldMan » Sat Apr 05, 2014 11:25 am

Ok, thought I'd update you guys. So I'm still waiting on my Cap One Secured card to arrive in the mail. But yesterday I recieved my first ever "Discover IT Pre-approved" offer in the mail. After a few beers (I love the gardening posts btw) I decided to give it a shot. I was instantly approved! Now I promise I'm done for awhile. :o)

Thanks for all the advice, this old man needs all the help he can get.
My Wallet:
Discover IT - $4000;
AMEX BCE $12000;
Citi Double Cash - $6600;
CHASE AARP Visa - $5000;
Banana Republic $1200;
NFM - $20,000;
Sears (Citi) MC - $6000;



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