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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Consumer Protection Law
Satisfied Customers: 17451
Experience:  B.A.; M.B.A.; J.D.
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I leased a new car on 8-25-15 and, of course, they checked

Customer Question

I leased a new car on 8-25-15 and, of course, they checked my credit. In the next couple of days I saw that my credit score (which was excellent) had dropped considerably. the dealer gave me a line that it was a "Hard Inquiry" but since I leased the car, it will change to a soft one. I waited a month for it to happen and when it did not, I called Transunion. They told me that it was the dealer's choice to make a "Hard" or "Soft" inquiry and that leasing or not leasing had nothing to do with it. I tried to get a very simple question answered by the Transunion stooges but got no satisfaction. The question: Why in God's name should credit bureaus lower your score after someone makes an inquiry about my credit, hard or soft? There is no logic to this.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 1 year ago.

Regrettably, there is a logic to this negative impact on a credit score after an inquiry. An inquiry indicates that you may have obtained a loan that has not shown up on your credit report yet and that loan may affect your future ability to meet your obligations. For more information on credit inquiries and their impact on credit scores, click on the link below:

http://www.experian.com/credit-advice/topic-inquiries.html

Customer: replied 1 year ago.
I do not know why my credit card information had to be given twice. The information was correct the first time I gave it. Concerning your answer, the operative word in your reply in "may". "May" means it is uncertain that a new credit purchase has been made. It strikes me as illegal to lower one's credit score on a "Maybe" without waiting for the exact knowledge. If our court system worked that way, everybody would go to jail because they "may" have committed a crime without due process. Further, I was given misinformation by the dealership salesmen who stated that, if I leased the car, the credit inquiry would not be considered a hard inquiry. I relied on their good faith and went ahead with the lease, not knowing that it would permanently have a negative effect on my credit score.
Expert:  Phillips Esq. replied 1 year ago.

I understand your frustrations. However, my answer remains the same. This is the current state of credit reports and credit scores and it is not going to change unless a law is passed to change the way credit scores are handled. The fact remains that inquiries DO affect credit scores regardless of your objections.

Customer: replied 1 year ago.
Well, what about the misstatement by the Hyundai salesman who assured me that the inquiry would change from a "hard inquiry" to a "soft inquiry" and not affect my credit score once the lease is final? On that same line, my gas mileage is not what was shown on their paperwork and I now I learn that Hyundai was fined millions bu the government for false advertising about their mileage. So we consumers get nothing for being fooled and the government gets the fine money. What is wrong with this picture?

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