mazda financing and hard credit inquiries

[closdubois]

Did anyone else check their credit report, using credit karma for example, after purchasing and financing through Mazda? I noticed today that there are 4 new hard inquiries relating to the vehicle I bought on Saturday. There are articles saying that you should keep hard inquiries down to one or two per year, and now all of a sudden I have four? Is this going to lower my score substantially? I already have several inquiries from last year when one account was closed due to inactivity, and then I quickly opened a new account just prior to buying a new car.

 

[inlinev]

I have not heard that about the number of hard pulls, but your score will go down some purely because you now have a loan which will change your debt to income ratio. I wouldn't worry about it because it will go back up so long as you are current on your finances.

 

[Capsfan84]

I believe I got 2 hard credit pulls from Mazda when I purchased my car. One was the day of purchase and then another one maybe a week or so later when they set up my account.

 

[closdubois]

I believe I got 2 hard credit pulls from Mazda when I purchased my car. One was the day of purchase and then another one maybe a week or so later when they set up my account.

I understand two, bur I'm not sure why I got 4. It bugs me.

 

[adgjqetuo]

I had the same with mine too, but I assumed it was because the dealer was shopping around for lower rates since Mazda wouldn't go below 3.9 or something. They found me 2.1 through a credit union somewhere. Hard inquiries have low impact on your overall score - just make the payments and it'll bounce back in no time.

FWIW my dealer used TansUnion (the same as CreditKarma) and my score was 40 points when the dealer pulled it then what my CreditKarma reflects, so I think they tend to run on the lower-side anyway.

Regardless, I wouldn't let it ruin your day.

 

[piotrek91]

I would not worry about it one bit.
All inqueries within a short time-frame for an auto loan get counted as 1 inquiry as far as your score is concerned.

You are correct that credit scoring systems allow people to shop for the best rates on car loans without having a negative impact on their credit scores. They do so by counting all inquiries for auto loans within a given period of time as a single inquiry.

source:
http://www.experian.com/blogs/ask-e...-credit-scores-of-inquiries-for-an-auto-loan/

 

[craigo]

Not a big deal and would be expected if you shop around for a loan (which you should do)