Why do car dealerships continuously pull your credit?

Why do car dealerships pull your credit multiple times? I just signed up with a dealer for financing and they said they shop my credit profile around to different lenders. So when I looked at my credit report, I was shocked to find seven inquiries on it.

Answer provided by
Eric Schad
Answered on Jul 14, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Because the dealership is shopping your credit profile around, each lender will pull your credit. That’s why you’ll see so many hard inquiries.
The good news is that this should only count against your credit score as a single inquiry if all the inquiries were within a 14-day period.
That being the case, you should select a lender within those 14 days or actively see what they’re offering to avoid extra hits to your credit report.”

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