The Credit Challenge

On my last post yesterday giving you some credit repair tips by knowing about credit inquiries, I mentioned to you about credit ’scare tactics’ that some lender use.

Why do I call it credit scare tactics?  Well, here’s how you may have experienced what I’m talking about.

You go to your local car dealer to buy a car.  You find a car that you like, so you sit down with the sales person to work out the numbers.  They ask you for your personal info to access your credit, just to make sure you can actually buy the car. 

So, here’s what happens next.  They come to you and tell you about your credit, but say to you “We are giving you a great offer, so buy this car now.” 

You say, “Well, I want to see my other options”

They say, we don’t suggest that because your credit score may drop and you will lose out on the offer we are giving you for this “special financing.”

All of a sudden, you are caught in surprise, and feel desperate pressure to buy now, because you don’t really want to lose out.  So, you forfeit the right that you have to shop around so that you don’t lose this great opportunity.

This often happens when getting a car loan or a home loan. 

So, is there any truth to this?  Absolutely NOT!!!!

You have a right to shop around and the credit agencies permit it as well.  Like I mentioned on my last post, auto loans and mortgage inquiries are allowed within a 14 day window from the first inquiry.

So, if you are looking to get a car (really, a car loan), you can literally check out one dealer, get your credit run, find out that they are offering you, and then go to another place that same day, or the next day, or any day within the next 14 days, and you will not be penalized for pulling your credit multiple times.

(If you didn’t read the last post, click here: Credit Repair Tips)

So, now you know that you do have the right to shop around, but just remember that you only have a 14 day window, so make sure you use your time wisely.

The next time someone tells you not to leave without buying because shopping around damages your score, leave immediately, because there is no truth to that, unless you take more than 14 days.  Shop around for the best for you, not them!!!