@Anonymous wrote:Hello everyone! This is my first post, and I appreciate any and all advice/experience you kind forum members can impart.
I am rebuilding my credit after a very long time of being blissfully ignorant about it. As things go, I want to purchase a new vehicle. Here are the facts of my situation:
5/23/2014:
length of employment: 13 years
annual income: $39,660
Equifax FICO: 657 (per credit union lender pull)
credit history: 12 years - 2 positive accounts - 1 negative account - 1 tax lien
approved auto loan: $19,600 - 8.79% - 2014 FIAT 500
I did not finalize this loan as I wanted to wait a few months before taking on a car payment.
7/14/2014, per Quizzle:
credit history: 6 months ?! - 2 positive accounts - 1 tax lien
what happened: 72 month auto loan from 2001, 90 days delinquent, paid off 7/14/2007, dropped from my Equifax credit report seven years to the day. The only credit accounts showing now are two tiny Visa cards, 6 and 4 months old.
8/5/2014:
Equifax FICO: 624 ?! (per myfico)
My questions are:
1. Why, oh why, did an erased negative account cause my FICO to drop so drastically?
2. Since the previous AmeriCredit/GMAC loan is gone, am I now considered a "first time" auto purchaser?
3. I understand the Auto Enhanced FICO score. Could that explain the 23 point difference between the lender pull and myfico?
4. Was that delinquent auto loan helping or hurting my Auto Enhanced FICO score?
So, it seems that now I have a thin credit file with a poor mix of accounts, but no negatives (except the tax lien), and I feel I may not qualify for another auto loan on the previous terms. I am trying to process this info rationally and not emotionally, but it sure is difficult! Again, any help is appreciated.*
Michelle
*yeah, I'll take a little cheese with my whine, if you have it
Hi, Michelle! Welcome to the forum!!
1. Why, oh why, did an erased negative account cause my FICO to drop so drastically?
When the account dropped off your credit report you lost the age that came with it. Average Age of Account (length of credit history) is a big deal in FICO score calculator (15%). With the loss of 12 years of history, and with one tax lien remaining may be the reason for the drop.
2. Since the previous AmeriCredit/GMAC loan is gone, am I now considered a "first time" auto purchaser?
I would assume yes. Credit report does not have a memory and as such if there is no Auto Loan on the history, noone can know that you actually paid off an auto loan before. It is a double edged sword thing - good when baddies drop, not so good where good account is gone.
3. I understand the Auto Enhanced FICO score. Could that explain the 23 point difference between the lender pull and myfico?
Although possible,I don't believe so. I still think the AAoA drop is the main reason.
4. Was that delinquent auto loan helping or hurting my Auto Enhanced FICO score?
I wish I had an answer for this. To my knowledge, only Auto lenders have access to the Auto Enhanced score and as such, I don't know how much weight is given to the previous auto loan. I know there is more weight than other accounts, but to what extent, I don't know.
Hope this helps some.
