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SanDiegoRed

I bought a car & now I have 12 new inquiries and was denied new credit card

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I bought a new car (YAY) but now I have 12 new inquires in addition to 7 I already had - yes, I now have a whopping 18 inquiries!!! When I applied for a new credit card I was denied because I have too many inquiries. I attempted to dispute them but CRA responded that they're valid because I applied for credit so they won't be removed. In my letter I did not acknowledge that I had bought a car but I suspect that it was obvious since I have a new auto trade line. This was not the first time I had applied for a car loan, 6 months earlier I had talked to my credit union and bank about refinancing the car I had so they ran my credit as well. In addition I had received 3 new credit cards (YAY) but, wowers, 18 is A LOT! I know that they stay on the report for 2 years and I fear this will hinder future credit requests. I had started to build my business credit so that I could expand my business but I know that creditors will look at my personal credit so this looks extra bad. Now what?

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FICO scores all auto inquiries within a 30-day window as one inquiry.

 

https://www.myfico.com/credit-education/credit-checks/credit-report-inquiries/

 

The "too many inquiries" reason is almost always untrue. For example, "too many inquiries" is why my TU FICO 8 is only 843/850 (I have two inquiries in the past 12 months, both from the same mortgage lender, pulled three days apart).

 

You may have been denied for too many new accounts, or, if your auto loan approval required 18 inquiries you probably have issues with your credit.

 

Credit issues in combination with too many new accounts can easily cause new creditors to be unwilling to extend additional new credit.

 

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Edited by cv91915

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I bought a new car (YAY) but now I have 12 new inquires in addition to 7 I already had - yes, I now have a whopping 18 inquiries!!! When I applied for a new credit card I was denied because I have too many inquiries. I attempted to dispute them but CRA responded that they're valid because I applied for credit so they won't be removed. In my letter I did not acknowledge that I had bought a car but I suspect that it was obvious since I have a new auto trade line. This was not the first time I had applied for a car loan, 6 months earlier I had talked to my credit union and bank about refinancing the car I had so they ran my credit as well. In addition I had received 3 new credit cards (YAY) but, wowers, 18 is A LOT! I know that they stay on the report for 2 years and I fear this will hinder future credit requests. I had started to build my business credit so that I could expand my business but I know that creditors will look at my personal credit so this looks extra bad. Now what?

 

I bought a new car (YAY) but now I have 12 new inquires in addition to 7 I already had - yes, I now have a whopping 18 inquiries!!! When I applied for a new credit card I was denied because I have too many inquiries. I attempted to dispute them but CRA responded that they're valid because I applied for credit so they won't be removed. In my letter I did not acknowledge that I had bought a car but I suspect that it was obvious since I have a new auto trade line. This was not the first time I had applied for a car loan, 6 months earlier I had talked to my credit union and bank about refinancing the car I had so they ran my credit as well. In addition I had received 3 new credit cards (YAY) but, wowers, 18 is A LOT! I know that they stay on the report for 2 years and I fear this will hinder future credit requests. I had started to build my business credit so that I could expand my business but I know that creditors will look at my personal credit so this looks extra bad. Now what?

 

Inquiries only ding your score for 1 year even while they remain for 2. Also for scoring purposes, multiple auto inquiries in a very short period of time are scored as a single inquiry as it's expected that car dealers and/or customers will rate shop. I wouldn't be too worried about the multiple auto inquiries. When purchased a new vehicle last year, I already had credit union financing lined up but the dealer insisted I feel out a credit app, with the promise that they wouldn't run it. They did. 6 times in total, 3 on EX, 1 on EQ, and 2 on TU for various lenders. It almost cost them the deal, but I got a free oil change out of it, which is a big deal ($) for diesel trucks. In the end it had little effect on my core, about 11 points if I recall, which then bounced back a month later than the new loan reported.

 

Bottom line, I wouldn't sweat it. I doubt any lender will hold rate shopping against you and your score will rebound quickly.

Edited by shackrat

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Even if we presume that inquiries were the SOLE reason cited for the denial, that same reason would have been given for the seven that existed before you permitted the dealership to shotgun your application around the countryside.

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the good news for you is anything over 6 inqs is scored the same.

 

so at 7 you were already good for shotgunning!

 

congrats!

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Whether FICO grades the inquiries or not, creditors still see them. They may make their own decisions about them.

Edited by Burgerwars

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You've been given great input so far. What I've learned here

 

1) Inquires don't matter

2) AS other said that's a BS excuse they give

3) Have your financing lined up and do not let a dealer arrange it.

 

In a few months you'll have forgotten all about this :)

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I feel your pain. I went to a dealership with 1 inq for a CU approval and left with a total of 6 inquires. The good thing to come of It was my CU said they would match and lower the dealer rate by .25% so I ended up with 2.25% instead of 2.75% they originally offered.

 

I think that I may be OCD about inquires even if they don't hurt as much as people say.

Edited by Allkindabroke

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Even if we presume that inquiries were the SOLE reason cited for the denial, that same reason would have been given for the seven that existed before you permitted the dealership to shotgun your application around the countryside.

This

 

If your app goes under manual review fugettaboutit tbh

 

They count debt ratios, income, pay bal ratios if you have any existing accounts with said lender, etc.

Edited by brazen

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