Is is normal for brokers to ask for credit app?

Ask the Hackrs
,
1

I’m in the marking for a new lease and trying to go through a broker. I was asked to fill out a credit application. Is that normal or red flags?

2

Of course, we need credit applications in order to submit the bank and get you approved for the loan.

3

But wouldn’t that be done through the dealership?

4

We submit it to the finance manager at the dealership, who puts it through the financial institution that is granting you the loan.

5

What happens if the borrowers fico isnt up to par – How do you navigate that?

6

A broker is just a middleman between you and a dealer.

If a broker isn’t running your credit app, they more than likely aren’t a true “broker,” and are simply selling you the name of a dealership.

7

You adjust the numbers based on score, or if it’s low enough, tell the prospective buyer they are SOL.

8

I’m a bit confused on this point…Are you saying that prior to finding a vehicle and providing you with a quote a broker is asking you to fill out a credit app?

9

Of course, your credit rating affects payment amount.

10

Brokers can quote you without a credit app. Just like they post here in the Marketplace section. They would base it off a Tier 1 score.

11

Makes sense as long as its a soft pull – A hard pull from the broker and dealer is a no-no

12

Brokers aren’t legally allowed to run someone’s credit. The only reason we have clients fill out our own app and send to the dealership is to control the deal. Normally, this wouldn’t matter, and there are several dealers I work with who prefer clients fill out the app on their websites. Unfortunately, due to some fine people on this forum, they will get the dealer information from you, go silent, fill out the dealer’s app and then show up at the dealer expecting a wholesale deal that a broker quoted them be honored in-store. Have had that happen several times.

13

It’s too bad you can’t work up a gentleman’s agreement with the GSM to not honor the price you provide unless the scumbag looking to be spoon fed and skip your fee goes through you.

14

In the past, these people were told to take a walk by the dealership. That they drove over an hour out of their way for this to happen is punishment enough.