Auto Loans & Mortgages
That said, the credit industry understands the importance of comparison shopping
for auto loans and mortgages. In fact, most lenders want to encourage shopping—since
it increases the chance that you’ll give them a try. So, some changes
to credit scoring models make in the 1990s and 2000s take into account the
likelihood that a smart borrower may generate multiple inquiries along these
lines.
Under the FICO scoring model, it doesn’t matter how many inquiries
for an auto or home loan that you generate in a 14-day period. They all
count as a single inquiry.
What’s more, your score does not include any mortgage or auto loan
inquiries that were made in the 30 days prior to scoring. So, you’ve
essentially got 44 days to get your act together.
Once you’ve started filling out applications and generating inquiries,
remember: The clock is ticking.
Next: Credit Card Inquiries |
