Credit Report?

Discussion in 'Credit Talk' started by Robert Bul, Aug 7, 2000.

  1. Robert Bul

    Robert Bul Guest

    For Example.

    Every time your credit report is pulled, does that make a negative reflection on you credit report? (Going to different car dealerships, and they wanting to pull your credit.)
  2. CK

    CK Guest

    Having multiple credit reports pulled may show up negatively on your credit bureau. Depending on how many you have pulled, in what time frame and how your credit is presently will factor in to exactly how much it will affect your credit score. Credit agencies use a credit score, called a FICO score, to determine how good your credit is (really how much of a risk is the loan they are about to give you). The more reports that are pulled the lower this score will get. The score will go down anywhere between 3-7 points per report that is pulled. This could really hurt you if you have a low score or even a moderate score and if enough reports are pulled even a high score can be seriously weakened. By having many bureaus pulled it makes credit agencies think that you are in need of a lot of capitol and you become more risky to them. So, the moral of the story isâ?¦.only have the report pulled if you are really serious about the credit you need. Two or Three credit reports in a couple of months probably wonâ??t hurt you, but say five or six will put a sizeable dent in your chances for approval. Good Luck!
  3. CardReport

    CardReport Guest

    Yes, for a few reasons:

    1. A large number of inquiries (particularily for credit cards) suggests that the consumer might be having general financial problems (e.g. has become unemployed), and may be trying to raise some quick cash. S/he may even be loading up on debt in preparation for backruptcy abuse/fraud.

    2. The consumer may be having repeated rejections based on some application information (e.g. income) that can't be seen on the credit report. The fact that *other* creditors are rejecting suggests that something is wrong. (And the applicant may then start lying on future apps.)

    3. Very recent inquiries may represent accounts that *have* been established, but aren't old enough to show up in the account listings on the credit report (the bureaus may be 30-90 days behind.) Thus, the consumer might already have access to more total available credit than it appears, and could be closer to being over-extended.

    However, as I understand it, the method for calculating FICO scores was changed a few months ago, so that multiple inquiries from auto lenders within a short period of time would be sort of consolidated, and thus wouldn't do as much damage, since such clusters are often the result of a single application by the consumer (which is then offered to numerous different lenders by the dealer.)

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