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Are there laws that regulate when credit may be checked? Several years ago, I bought a car from Carmax and paid cash for it. I paid a deposit on it and when I picked up the vehicle the next day, I gave them the check. I had to transfer money from savings to my checking account. The sales person told me he ran my credit because they are required to do so at Carmax. I didn't think much of it at the time, but kind of wondered if this was legit.
I always pay cash and they always run my credit. I was told it is because they want to be sure they have leverage if the check doesn't clear which makes sense.
The other way is for them to go to the bank with you where you either wire the money or get a cashier's check, but the dealer is not going to do that.
It drops your score 10 points, so not that big of a deal.
I have NEVER had any dealer run a credit check when I purchased a vehicle. However, I have always presented them with a back check issued by Wells Fargo (past 10 years), Comerica bank or Bank of America in previous years.
However, in all cases, I have not ordered but either purchased what I wanted off the lot or in two cases, the vehicle was picked up at another dealer (both cases over 300 miles away) and I explained I would bring them a bank check upon pickup.
Are there laws that regulate when credit may be checked? Several years ago, I bought a car from Carmax and paid cash for it. I paid a deposit on it and when I picked up the vehicle the next day, I gave them the check. I had to transfer money from savings to my checking account. The sales person told me he ran my credit because they are required to do so at Carmax. I didn't think much of it at the time, but kind of wondered if this was legit.
There are no laws totally forbidding it, but you can lay down the law.
"No credit check, otherwise I will take my business elsewhere".
In my situation, they never asked, they just did it. It turned out to be a one time deal and I probably won't go back to Carmax and this is just one of several reasons. No big deal. It was an experiment.
Are there laws that regulate when credit may be checked? Several years ago, I bought a car from Carmax and paid cash for it. I paid a deposit on it and when I picked up the vehicle the next day, I gave them the check. I had to transfer money from savings to my checking account. The sales person told me he ran my credit because they are required to do so at Carmax. I didn't think much of it at the time, but kind of wondered if this was legit.
Soft pulls are done all the time for various marketing purposes (pre approving you for a credit card promo, etc.). A hard pull is not allowed unless you give express permission (along with the necessary info) - basically a loan application.
For the most part - you MAY have signed something that allowed them to do a soft pull. Maybe part of the form you signed for the test drive, if you did one (the ethics around that is another discussion).
In either case, i believe they need your SSN to do so. So not giving that can likely keep that from happening.
There is NO reason to give out your SSN ever, unless you are applying for credit. This includes doctors offices etc. Of course, they can always chose to not provide said services to you.
I always pay cash and they always run my credit. I was told it is because they want to be sure they have leverage if the check doesn't clear which makes sense.
The other way is for them to go to the bank with you where you either wire the money or get a cashier's check, but the dealer is not going to do that.
It drops your score 10 points, so not that big of a deal.
If someone has a 497 credit score they aren't taking a personal check. If one absolutely insists they cannot/will not then they can come back with guaranteed funds, or do a wire transfer.
But the obsession with credit is something I don't totally get. So, you buy the car, a month later your credit is back to where it was, and in the first place the few points that it moved isn't going to amount to any difference even if you needed it.
If someone has a 497 credit score they aren't taking a personal check. If one absolutely insists they cannot/will not then they can come back with guaranteed funds, or do a wire transfer.
But the obsession with credit is something I don't totally get. So, you buy the car, a month later your credit is back to where it was, and in the first place the few points that it moved isn't going to amount to any difference even if you needed it.
True, but cash is cash.
Even with a credit score of 497 if you're paying cash no reason to run a credit check.
I just bought a car out of state and wired the funds down to the dealer since I wasn't there in person.
They didn't ask for a credit check and I wouldn't allow it even with a soft check and my credit score is over 800.
Why not bypass the situation completely and wire the money?
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