Overhaulin'

What is the affect on my Credit Score by applying for more than one Car loan in order to compare rates.?

I have excellent credit, my credit score is in the high 790s. I want to apply for a car loan from my bank and have the money in hand when I decided to purchase the car. But, I also would like to give the dealership the opportunity to beat the banks rate. How will this affect my Credit Score by having one approved loan and then having the dealership run my credit again to try and beat that rate? Thanks.

Public Comments

1. Your score will go lower.
2. When I was shopping for cars (I had been approved with my bank) I brought with me to the dealerships a printout of my credit report. I flat out asked each dealer, "here's my credit score, can you beat such and such rate that my bank already approved me for?" Believe me you will get all sorts of responses but the dealers who were trying to give me the run around I didn't want to even deal with. If you do get one that says they can beat it, have them put it in writing before signing ANYTHNG! In my case, my credit union had the lowest rate at the time. Nowadays with car sales at almost an all time low, you should be able to get some 0% financing with your great credit score. Hope this helps and good luck.
3. As long as the inquiries are done within 2 weeks it will only hurt as 1 inquiry not 2. Credit bureaus are aware people will compare rates for cars and mortgages so they give some leeway. For cars its all inquiries with 2 weeks count as 1 and for mortgages it's all inquiries within 1 month count as 1. Now all of them will still show on your report, they just will only have the effect of 1. And your score is so high it won't really have any effect.
4. With a score like that. It is not necessary for them to pull your credit. Just tell them you have a rate through your bank of ?.?? % and that your credit score with them is 793 Equifax. Ask them if they can beat the rate and what is the rate that they can do. I have seen 4.37 as about the lowest through a prime lender like Chase bank. Some credit unions are doing 4.95 and some maybe even less. But I would first find the car you want. Work out the money part of it, then before you give them credit information tell them you already have an approval through your credit union. Tell them the rate and tell them you only want to use that credit union. They will offer you a lower rate if they have it. just make sure it is not an incentivesed rate. usually on those you give up the rebate to get the low low rate, ie....0%, 1.9, 2.9 or 3.9 %..... Don't ask them to beat it, let them try and then if it is not more than .25 less than what you already have, then just tell them no I like my bank. When you get into the finance office, that is the guy that will finalize your rate anyway. So tell them what you are working with, and see if he can beat that. Without giving up any rebates.