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Two credit inquiries?

8K views 25 replies 12 participants last post by  MB DNA 
#1 ·
Did anyone else get hit with two hard credit inquiries on their credit report from Mercedes after leasing their Smart?

I'll post a screenshot of the two hits on my report later.
 
#2 ·
Yes, not only did I get 2 but the way it was explained to me was one with the sales dept and the other was with the leasing dept. The hard hits were doubled because I didn't lease on the first trip and came back the next month and at that time, did complete the lease, so two more hard hits show on my credit report for a total of 4.

After I found out about all these hits, I complained and was told there was nothing they could/would do to correct the problem.

I have leased my last smart because of this and will not be dealing with Tampa Smart/Mercedes Benz again. What a bunch of crap.
 
#4 ·
When the dealer is in the same building as the lease office, it should NOT be necessary to check credit twice. Seems one needs to walk down the hall and communicate with the other. They know, but don't care what happens to someones credit score with hard hits. They are just too lazy to do it for my benefit instead of getting up off their razz and walking down to the other office and get a copy. Why does the dealer have to have my score if they know up front this is going to be a lease? There is no excuse for this type of customer no service and Smart/Mercedes will never get another dime from me. BTW, the time between the 1st visit and the actual transaction was 7 days.
 
#5 ·
The lienholder (bank) and the car dealership are two different locations, and usually in two different states. They are each required by Federal Law post 9/11 to accurately verify your identification through many means beyond a simple ID card or driver's license. The same scenario applies no matter if you're dealing with smart, MB, or any other auto manufacturer.

In your situation, your local dealer in FL checked your credit. And MB is headquartered in TX and they run it as well. The dealer has to verify your finances, and so does the bank. 1+1 = 2.
 
#6 ·
I got hit twice when I first initially leased my car. Loeber Motors inquired my credit, then Mercedes-Benz Financial Services did the same. They both were gone by the next time I pulled my credit report.

I got hit again this year when I converted my lease into a purchase. But only once, from MBFS (because the dealer wasn't involved). And again, it's gone.

No big deal, really. It's just how it works. :shrug:
 
#7 ·
I "hard" hit only lasts 90 days at most, and is about a 5 point hit most times. Really not that huge of an issue. If your score is low enough that 15 to 20 points is going to throw you that far down, you probably shouldn't be leasing a car...

As noted, the rules for most things financial have changed drastically over the past 5 to 10 years. 15 years ago when buying my first house I barely had to give them my name to get a mortgage, and I was just starting up, with college loans and a score in the 600s. This year, I had to jump through enough hoops I felt like a circus animal, that with a house owned free and clear in pocket, more than 10% down in cash in the bank, no other debt, and an 845. So, yeah... Things change. :p
 
#9 ·
A hard credit hit doesn't impact your score for 2 years. My info comes from the credit reporting agencies directly, with linked pages stating just that from each of them below. It may show up on your report for up to 24 months with one of the reporting agencies (Trans Union), but it certainly won't impact the score calculated that long.

Let's review them:
FICO is the most-used scoring system out there for credit right now. It considers all mortgage, auto, or rental hard hits within a 45-day window to be one "lumped" hit (and has done so for many years now). It roughly halves the point costs during lumping, and then again every 3 months, expiring them completely after 12 months. Most single hits range from 1 to 6 points, and at no point would multiple hard hits in a 45 days window in one sector rack up more than 12 points.

Each of the independents (Equifax, TransUnion, and Experian) use a slightly different formula, but none hold points to a hard hit beyond a year. (TransUnion again being the longest hold out.) Experian and Equifax won't even show a hard hit after 12 months, and don't count them after 180 days. TransUnion shows up to 24 months history, but doesn't count them after a year. (They use a similar method to FICO's model, and always tend to trend slightly lower than all the rest of the services).

Even then, you can petition to have each agency evaluate and remove some points early in cases like this if you really care that much about the rating hit. Usually they'd fall off your report before you could resolve it. Four hits, even at the max cost of 6 points each is only 24 points, which generally reduces to 12 or less within a month. You can wrack that up for twice as long by missing a single mortgage or student loan payment, or two CC or auto payments.

As for being a "piece of work", I'm not the one whining because I lost 12 points on my credit score 2 years ago and falsely claiming I'm still being impacted by that issue today. I'm simply putting out what's factually found in 30 seconds by anyone google-ing the words "hard credit hit calculation" and reading the top 3 or 4 non-ad results. :shrug:

Hope everyone had a fun learning experience! :)

 
#14 ·
Why are they still showing on my credit reports??
Because it's probably been less than 24 months and the credit report you're referring to was pulled from TransUnion. Reguardless, they're having exactly 0 impact on your current score (assuming they're over 12 months old). I supplied links to each of the credit scoring groups sites, which again explicitly states these facts. I'm simply telling you what they say they do. If you find one not following it's own rules, you should call them to question it.

Apparently, your so called factual info isn't so factual
Apparently you have poor reading comprehension in addition to your other woes.
 
#12 ·
I'm getting old. Own my house and land. Other than leasing this car haven't used any credit for anything in years. I really don't care what my score is!!!!

In recent years they've turned the whole process into some kind of game or competition. Plain stupid. Just another way the bankers are screwing us all.

The whole credit ball of wax is a BS scam. Cash still works fine and dandy!
 
#15 ·
In recent years they've turned the whole process into some kind of game or competition. <...>
The whole credit ball of wax is a BS scam.
Both statements are true. The credit game has been around a long time, but the US has morphed/honed it over the last 50 or so years. Like any game, to play it right you have to:


  • Care about playing/winning
  • Know/keep up on the rules & follow them (where applicable)
  • Find/exploit loopholes & avenues for advancement (optional)

I did a part-time stint in a debt collection agency when I was in college, and learned a ton about how the system worked. I went from no credit (low 500s) to 2 platinum cards and a score over 740 within 3 years. I figured it was worth "playing the game" since it would give me a slight advantage later (it did!), in the form of high-risk but interest-free short-term loans.

I also don't really care much about my score now, having bought the last credit-based thing I'll likely ever buy (last home) this year. I still play by the rules, and have a near perfect score (843 via last months Discover bill), but even that only goes so far these days. It did help a little when applying for a new mortgage on my second house, but only a little...
 
#16 ·
Thanks for all your insults. I really(NOT) appreciate your input on this matter. By your replies you are proving that you have no idea what happened and are positive it couldn't happen. One thing for sure I have found out. I should know better than trying to converse with an idiot because they try to bring you down to their level and then beat you with experience. Well done. BAAA
 
#20 ·
Last reply on the topic

Thanks for all your insults.
It was never my intent to insult. You took my stating how credit bureaus say they do business as an affront to you in some way. Perhaps (after re-reading) taking my joke about leasing not being for those worried about credit hits as a personal attack? :shrug:

I noted twice that hits being listed on the report does not indicate they're actively impacting your score. And if you feel it is, that you should be asking the credit bureau you got the report from about what's going on. I though you were looking for solutions, versus just coming here to vent. My bad.

FWIW: Don't believe what I say or links I posted, if you so choose. Your (lack of) belief doesn't impact me, or the 830 range ranking I have with all 3 bureaus.

Good luck!
 
#17 ·
I think everyone in this thread should calm down and assess the situation at hand? :)

Woody is correct on how the Credit Bureaus retain credit hits like that. So, based on that knowledge, perhaps one should contact the offending bureau and see why the hits still exist? Then, dispute them! :)

I mean my credit has been repeated trashed 2-3 times since I've joined this forum, and all of them because the bureaus keep mixing me up with other people. Like the first time I pulled my credit, they had me as filed a bankruptcy at the age of 8...Whaaa?

I pulled it yesterday, thankfully 95% of the stuff that's on there right now is mine, but only time will tell.
 
#25 ·
I created an account just because this thread turned up in my search.

I recently leased a new 2016 E class from MBFS from a local dealer in California. I checked my credit this morning after taking delivery last week and lo-and-behold there were two inquiries on my TransUnion report.

One from the dealer; one from MBFS. I'm currently talking to the dealer to find out why they needed one too but I have a feeling this is standard procedure. My credit took an average 4 point hit for the hard inquiries but nonetheless I'd like to keep it to at least 1!
 
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