Understanding FICO® Scoring

[Tuscani]

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MrSpock wrote:

So which CRA reflects my "auto-enhanced" score?

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You have three auto scores just like you have three classic\BEACON scores (one for each CRA).

[WhiteCleats]

Hi Tuscani, Great thread! Thanks for your time and effort. Would you mind giving your opinion on my credit as it pertains to a car loan? My current credit scores are as follows: As of July 20th they were Experian, 679, TransUnion, 685, and Equifax, 693. At this time I was showing debt of 1,289 at 18 percent usage on my cards. Oddly, when I signed up for Score Watch today, it showed my debt down to 1,119 at 16 percent usage and my EQ score jumpted to 715. Can you explain such a large swing? That seems a bit much for only a 170 dollar pay down. Incidentally, I've recently paid off my cards completely but it hasn't hit the CRA's yet. I'm waiting for all my balances to fall under 2 percent usage before I apply for the car loan. As for the details, the positive is that my debt load ratio is lowish and I've never had even one late payment. No charge-offs, no bankruptcies, no nada. However, I do have one collection account -- a medical bill that was paid 4 months late back in Feb. of 2005. I tried disputing it since it was an insurance snafu but I didn't win. The negative, besides the collection, is that my credit isn't old. FICO shows my credit as being only 5 years old with my average age of accounts as being 3 years. Also, my highest credit card limit is only two thousand. Additionally, I have never had a car loan. My only credit is 5 credit cards and a gas card. What I'd like to do is qualify for Mazda's 4.9 model year close-out incentive rate for a new car purchase. Can you comment on the likelihood of this? I hear that things like the down payment effect qualification. I plan on going in on the last day of the month and buying a 2007, which hopefully, will mean they're desperate to deal. However, I don't know if tactics like these have any impact on the interest rate or just the price of the car. Anything you can add will be much appreciated!

Message Edited by WhiteCleats on 07-24-2007 06:14 AM

[npboy74]

Ok, let's see if you can help me out on this question (assuming I did this right...first time on the boards).

In the next 6 months or so, I am planning on buying a new car.  I've just read about the auto credit FICO score and all that.  My question is, what if you don't have any auto history?  10 years ago or so I bought a used car that was repo'd.  All that has fallen off my credit reports, so all I have on my credit history now are some accounts in good standing and one credit card I got in the last 3 months that is also in good standing. (first credit card I've had in probably 12 years)  My Equifax FICO score is currently 664.

If I don't have any auto financing history for anyone to check, what info do they fall back on? 

In place of any clear cut idea so far my plan is to keep all my accounts current, save up as large a down payment as possible and try to get pre-approved for financing before I ever walk into a dealership (already have the car picked out).  Beyond that, is there anything I can do?

Ok, that was more than one question.  Sorry

[Tuscani]

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npboy74 wrote:

Ok, let's see if you can help me out on this question (assuming I did this right...first time on the boards).

In the next 6 months or so, I am planning on buying a new car.  I've just read about the auto credit FICO score and all that.  My question is, what if you don't have any auto history?  10 years ago or so I bought a used car that was repo'd.  All that has fallen off my credit reports, so all I have on my credit history now are some accounts in good standing and one credit card I got in the last 3 months that is also in good standing. (first credit card I've had in probably 12 years)  My Equifax FICO score is currently 664.

If I don't have any auto financing history for anyone to check, what info do they fall back on? 

In place of any clear cut idea so far my plan is to keep all my accounts current, save up as large a down payment as possible and try to get pre-approved for financing before I ever walk into a dealership (already have the car picked out).  Beyond that, is there anything I can do?

Ok, that was more than one question.  Sorry

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Your auto score will be lower if you have no auto history.

[bengerman]

will it be at all based off your classic FICO? or just off the fact that you have no auto history?

[creditup700]

I have two car repos against me, but one is reported as charge-off. Does the dealer know this is still a repo. Also, what's the difference between a charge-off and a repo as far as my credit report is concerned?

[Noah_Bodie]

http://www.buzzle.com/articles/secret-credit-score-car-dealer-wont-tell-you-about.html

[Noah_Bodie]

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creditup700 wrote:

I have two car repos against me, but one is reported as charge-off. Does the dealer know this is still a repo. Also, what's the difference between a charge-off and a repo as far as my credit report is concerned?

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Even if it's not reported on your CRs as a repo, if the dealer sees a charge-off from GMAC, Ford Motor Credit, etc. then they'll presume it's a repo.

If they see a charge-off from Cap One, Wells Fargo Finance, etc. maybe it won't indicate it's an auto purchase. But I suspect it's somehow coded as an auto purchase so they know it's a repo.

Big picture, there's little difference between a repo and CO on your credit score. They are both in the very bad category--although if one voluntarily turned in the keys, and it's reported as such, that would likely be viewed in a better light on a manual review.

Practically, a dealer probably would be more concerned with one repo than several COs and COLLs. If one keeps their car, but lets a CC bill go, then the dealer might presume, "OK, this guy or gal fell on hard times, but they kept their car note current." If so, then they're more inclined to finance you, or give you a better finance deal.

However, I know folks in here, and elsewhere, have had repos and later gotten a car financed.

[dsteed]

I had a repo, about 9 years ago, and it is not showing up on my current FICO reports. Will it show up on an Auto FICO? From what I have read it will not, is that a correct assumption? ~thanks!

Message Edited by dsteed on 02-26-2008 11:51 AM

[Topshelf]

6 years ago I had a repo.  When I went to purchase another car several years later, I had to have my Mother's name put on the loan as well.  Paid it off, never late.  Two years ago asked for a no down payment loan on another car.  The auto dealer thought I was nuts and said they seldom go through.  So I offered $1000 down on a $13,000 loan for a used car.  Bank came back and and gave me the no down payment loan at 7.5% interest.  I was a very happy camper as the repo is still showing up on my credit report.