Auto credit query shouldn't ding score
Dear Terry,
I wanted to check into the cost for auto insurance since I have not compared pricing in more than 15 years. However, when I called to make an inquiry, I was told they needed our driver license numbers, Social Security numbers, etc.
I asked why they needed our Social Security numbers and was told they pull credit reports of prospective customers. Does this credit pull affect the credit score? If I check with eight different insurance companies, could that cause an adverse effect on the credit score?
Please advise me, because now I'm dragging my feet to do this comparison since I don't really want them pulling my credit score until I know if it affects the score.
-- Wilma
Dear Wilma,
Your credit situation -- along with your driving record -- can affect your auto insurance rates. The thinking is that someone with bad credit is less likely to take proper care while driving. So, most agencies will check your credit before giving you a quote.
Since it's not an application for credit, the inquiries shouldn't drive down your credit score. But I don't think you'll need to check with eight companies for the best rates. A check with about three should give you a good range of what's out there.
Lender won't transfer car title to son
Dear Terry,
My mother purchased a car a little over a year ago. She has fallen behind on her payments due to disability. Can I assume the current loan under these circumstances? I'm definitely willing to make the payments in arrears and bring the loan to date.
-- Kelvin
Dear Kelvin,
Contact the lender and tell them you want to bring the loan up to date and will be making the payments going forward. The lender should be happy to hear that.
However, the lender will not transfer the loan and the car title to you. Until the loan is paid off or until the car is sold, the loan and the car will remain in your mother's name.