If you plan on purchasing a vehicle, please know that if you have bad credit and you complete an application with the car dealership’s finance department, there is a great chance your credit will be ran numerous of times.
This is because your credit is so bad that the dealership is trying to find a lender to pick up your loan. Your credit application now becomes a bidding war and this may cause your credit score to decrease drastically.
I understand if you’re in need of a vehicle and you must do what you have to do, just know that you might be putting your credit at a greater risk. But if it isn’t a must, why jeopardize your credit? Especially if you’re trying to purchase a home in the near future.
Unnecessary inquiries can weigh heavy on your credit report and lower your credit score. To make matters worse, the next time you apply for credit the new lender will see your troubled past and become leary of extending credit to you.
Ask the finance dept how many times will they run your credit or inform them that after a few attempts if you don’t get approved you’ll come back once your credit improves.
Or try getting approved at a credit union or another bank before purchasing your vehicle. Nothing is more cooler than already having your pre-approval letter!