Okay, when I laid down my deposit of $500 dollars for the 2005 Mustang back on August 17th, the salesman asked for my Driver's License (which I gave him) and my SSN# to put on the deposit slip. Now, I just read at carbuyingtips.com that I should NEVER give out that information, because dealers use it to run UNAUTHORIZED credit checks on you which hurt your credit score. This is subject to penalty of $2,500 under the Fair Credit Reporting Act.
I ran a quick credit check on myself (which does NOT hurt my score) on August 27th, and it didn't show anything fromt he dealership. If this guy checked my credit without me knowing, would it have already shown up on a report 10 days later, or would I have to wait longer for it show up? Are dealers doing unauthorized credit checks a common occurance? Anyone here go through it?
I'm thinking of asking my salesman if he did run one and not to lie to me and tell me the truth because I'm going to get an online credit report when I return home... but then again, I don't want to sound like a paranoid wacko... any advice here?
Sorry if I sound so naive... this is my first new car and I'm only 21.

 

I am not sure why he would run a credit check on you until you were actually applying for a loan, who's to say you were going to finance through the dealership. You could be paying for the car in cash for all he knew.

 

I agree, nothing to worry about quite yet. I'm sure there are some unsrupulous(sp?) dealers, but most of them are probably smart enough to avoid directly exquisite feeling release of liquid waste product off their customers. If it makes you feel better, call him and quote the site. Let him know that you just wanted to verify their policies blah blah blah. I don't see anyone getting upset about it.

Jason

 

they have to have you sign something and yes it would have shown up already. He didn't run your credit.

Roger

 

I sell cars and trust me they will not run your credit without you knowing it. If they ran your credit it would show up as soon as they did it. For example if you go to one car lot and they pull your credit, you leave there and then go to another and they pull your credit they will know that you just left the other car lot by it showing up on your credit report. I do not believe you have anything to worry about.

 

I am usually pretty distrusful, but it is possible that he wants to make sure you are who you say you are when you come back in October and tell him you gave him $500 three months ago. If you are bothered, I would call him up and ask him in a non-accusatory way why your soc# was needed. You can't be too careful these days.

 

i don't believe you have to sign anything...giving social security number should be enough.

 

Hey then again if he does run your credit without telling you maybe you can get a nice discount on the car? I don't really know anything about this just guessing .

 

"unscrupulous"



And yeah, I got that right first try. I'm terribly proud of that. Thanks dictionary.com for verification!!!

 

It would have showed up as an inquiry. I doubt they would bother to run it, its more of a showing of good faith of being interested in the vehicle. However, some dealers WILL get an SSN and run it though without an app.

 

If you have initiated a business transaction with a dealer then by law he has the right to pull your credit.

604. Permissible purposes of consumer reports [15 U.S.C. § 1681b]

(F) otherwise has a legitimate business need for the information

(i) in connection with a business transaction that is initiated by the consumer; or

Most dealers cover their butts by getting written authorization prior to pulling someone's credit.
It does not hurt your credit score when one dealer pulls it. In fact, if you go to 10 dealers in a week and they all pull your credit, all the inquires are counted as one transaction.
It's when you apply for 10 credit cards at a time that your credit score gets hurt.
You have no problem or recourse in this instance.

 

He doesnt see any inquiries though, so I'm sure he's fine.

 

If you are planning on financing your car and want factual info at the dealer as to what rates they can get you, then you MUST let them pull your credit, or furnish the dealer with your credit score. Almost all banks that dealers use to get you financing use your credit score to determine your interest rate. Without this score info, the dealer is only guessing at what rate he can get you.
I am not saying give your info to everyone but providing it in the right circumstances can help expedite the process.

 

Yes, that's part of what I mean by " he has no problem". I was also addressing some of the other posts, and his comments about how the dealer could have broken the law.

 

Check out My FICO for more info on credit scores.
My FICO

 

B) If you're concerned about someone accessing your account; or even stealing your cerdit (opening accounts in your name), there is a little known process called Opting Out, Effectively cuts down access to your credit report without your permssion. It can be a hassel if you are trying to get credit immediately but worth while if you think you may have been compromised.

Opt Out Number: (888) 567-8688 Cuts down on credit inquiries and makes it more difficult for identity thieves to open accounts in your name. Trmrmbrt, this can delay lenders legitimately accessing your information when they are processing your loan.