When shopping for a car loan, how do you protect your credit score from multiple inquiries, after you allow several dealers to pull your credit?

  1. A) It does not matter, as long as all the credit pulls are in a 14-day window.
  2. B) Only the creditor’s inquiry that I get the loan from will show on the credit report.
  3. C) There’s nothing you can do about it- you just need to keep inquiries to a minimum.

The Correct answer is A. Here’s why:

Millions of people, including bankers, car dealers, and even finance managers, have no idea that our current credit scoring system is set up to allow you time to shop for a car loan and only have 1 inquiry on your credit report. However, the window of opportunity is 14 days from the date that you allow car dealer #1 to pull your credit report. This is why I would recommend all m readers to read the valuable insights and recommendations that are mentioned on Velgenklere that they can follow in order to keep their credit score safe from any damage as they get a car loan for themselves.

Millions of people go out ‘window shopping’ for cars over a period of weeks, or even months, and allow their credit to be pulled numerous times. When you allow additional inquiries past 14 days, they accumulate and cause a compounding negative effect against your credit score. Those nasty inquiries can plummet your credit score 50 to 100 points or more very quickly. All those inquires stay on your credit report for 2 long years. Only time can remove them. It’s so sad that millions of people destroy their credit score by doing this unknowingly.

Now that you know the secret, here are some tips for car shopping:

1) You need to make sure that your credit score is 720 or higher to get the best rates.

(I have helped 1,000’s of people over the past 30 years accomplish this)

2) Plan ahead, take your time and window shop.

Visit car lots, research on the web, etc, and decide exactly what make and model you want.

3) Negotiate with several dealers to get their best price. By giving them an estimate of your credit score they can also give you an estimate on a monthly payment. Once you know all the dealers quoted prices…

4) Contact the dealers you negotiated with and give them permission to pull your credit!

Remember that each dealer has to pull a credit report from the service they use to satisfy their finance department.

And also remember you have 14 days from the first pull to shop, compare and renegotiate your best deal.

That’s it! Now you know how to shop for a car loan and protect your valuable credit score.