Robert
Irvine,#2Consumer Comment
Mon, May 04, 2009
It is for all practical purposes impossible for your score to drop 100 points in this situation, strictly on the inquiries. Without seeing the actual form, to see if there is more "fine print" and exactly how it was worded. You probably did give them permission to run your credit report, and submit your information to additional banks. In most credit scoring systems Inquiries account for a very small portion of the overall score. For example for a FICO score it accounts for 10%. Since the FICO score only has a 550 point range(300-850), that is worst case scenerio of 55 points. Vantage has a 489 point range(501-990) or only about a 49 point drop in a worst case. However, these scorings systems also take into account that they know you are not going to get 13 cars. So they count all inquires within a 2 week period as only one. For most people you would have only seen a drop between about 3-8 points. Along with these two major scoring systems, there are several "consumer" scores that can vary as much as 25-100 points from either FICO or Vantage. So in your "drop" are you comparing the exact same report and scoring model? If in fact there is a drop you need to look at other factors that have a much bigger effect. This includes your balances on your credit cards, any late payments posted, or collection accounts added. Just one final side note. If they submited your application to 13 banks the finance manager either was new or probably did not really know what they were doing(IMO). Because based on your information they should have a fairly decent idea of which banks would or would not provide a loan. Where it may have made it to 5 or 6 banks(at most).