Transunion mystery

[Mikeyd01]

First time poster long time reader LOL!

I recently purchased a new Volkswagon  from a very large reputable dealer.  Prior to my  purchase  I did some homework with  the dealer and found out they use Transunion.  

I also went to my credit union and they ran my credit for preapproval  through Equifax and it was 736

Prior to selecting my vehicle I also went straight to Transunion for a score and it was 740.

When we finally selected a vehicle, I was informed the dealer was mandated to run a credit check even if we were financing elsewhere which sounded sketchy to me.  That said they ran my credit through Volkswagon credit and to my shock it came back at 666 being reported by Transunion.   How could this be?  Is the FICO score I see as a consumer from Transunion not the same as what a creditor sees from the same reporting agency? 

The dealership then turned around and gave me  1.9 APR for 60mo.   On a 666 score?   

The entire process to lure me into financing with VW credit seems sketchy to me.   That said  I wanted to see if anyone else has a discrepancy between what we see as a FICO score vs what others like a dealership sees with the same reporting agency.

[IOBA]

There are different versions of the FICO score.

And auto financing uses an entirely different model to assess risk.  I don't understand it and totally dread it if I ever have to purchase another vehicle.  Might be happening soon - my lovely car has close to 190k miles on it.

When I bought my lovely car, I paid cash.  The dealership STILL ran my credit and said it was Federal law (or something else to justify their actions).  I was NOT happy with what they did.  And it was not necessary to verify my identity.  Passport, DL, Military ID, social security card, credit card, clear title to the vehicle I was trading in, proof of insurance, utility bill, bank statements, letter of credit, and a certified bank check was more than sufficient - in my opinion - to verify who I was.  

They basically - in my opinon - BS'd you.

BUT CONGRATULATIONS on your excellent loan rate!!!  And your new car!

[parkman]

I can understand being upset about being lied to our mislead, but that is an awesome rate!

[guiness56]

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@Mikeyd01 wrote:

First time poster long time reader LOL!

I recently purchased a new Volkswagon  from a very large reputable dealer.  Prior to my  purchase  I did some homework with  the dealer and found out they use Transunion.  

I also went to my credit union and they ran my credit for preapproval  through Equifax and it was 736

Prior to selecting my vehicle I also went straight to Transunion for a score and it was 740.

When we finally selected a vehicle, I was informed the dealer was mandated to run a credit check even if we were financing elsewhere which sounded sketchy to me.  That said they ran my credit through Volkswagon credit and to my shock it came back at 666 being reported by Transunion.   How could this be?  Is the FICO score I see as a consumer from Transunion not the same as what a creditor sees from the same reporting agency? 

The dealership then turned around and gave me  1.9 APR for 60mo.   On a 666 score?   

The entire process to lure me into financing with VW credit seems sketchy to me.   That said  I wanted to see if anyone else has a discrepancy between what we see as a FICO score vs what others like a dealership sees with the same reporting agency.

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It is sketchy.  Unless they are financing your vehicle, they have NO permissible purpose to run your credit.  FTC is very clear on this.

[guiness56]

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@parkman wrote:
I can understand being upset about being lied to our mislead, but that is an awesome rate!

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Are you referring to them pulling his credit when they should not have or his score?

[parkman]

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@guiness56 wrote:

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@parkman wrote:
I can understand being upset about being lied to our mislead, but that is an awesome rate!

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Are you referring to them pulling his credit when they should not have or his score?

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About them telling him that they were mandated to pull his score. Looks like in the end it worked out. Shouldn't be a problem with the way the scoring algorithm works, and I remember reading something in the auto loan guide about going into the dealership with your own financing, report, and score and seeing if the dealer pulls a better score (due to auto-enhanced algorithm) and/or beats your financing. 

[thom02099]

For what it's worth, some credit unions (mine will) give you, the consumer, an auto-enhanced score, if one is looking to finance a vehicle through them, versus the generic consumer score.  That can give you something to work with if you're a credit union member and offered this benefit.  Just one more good reason to have membership in credit unions.  Not saying that all do this, but it's worth investigating if one is a member and this is an option. 

Also, I've purchased cars where I refused to let the dealership run my credit report.  As guiness56 stated, if there's no permissible reason, they shouldn't be pulling it.  If you go in with cash or a purchase letter indicating you have the money, they have no reason to run it.  No dealership that I've been to has ever been able to beat my credit union, for "come on" rates.  No harm in talking to the finance person, just don't let him/her/them pull your credit report if you already have financing in place. 

[guiness56]

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@parkman wrote:

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@guiness56 wrote:

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@parkman wrote:
I can understand being upset about being lied to our mislead, but that is an awesome rate!

---

Are you referring to them pulling his credit when they should not have or his score?

---

About them telling him that they were mandated to pull his score. Looks like in the end it worked out. Shouldn't be a problem with the way the scoring algorithm works, and I remember reading something in the auto loan guide about going into the dealership with your own financing, report, and score and seeing if the dealer pulls a better score (due to auto-enhanced algorithm) and/or beats your financing. 

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They could do that ONLY if you authorized it.  Having your own financing means just that, the car dealership is out of the picture whether they want to be or not. 

However, by them telling the OP they were mandated to do so, 1).  They told a fib and  2).  pretty much suckered him in.

If OP wants to fight it he does have grounds to do so.

[parkman]

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@guiness56 wrote:

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@parkman wrote:

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@guiness56 wrote:

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@parkman wrote:
I can understand being upset about being lied to our mislead, but that is an awesome rate!

---

Are you referring to them pulling his credit when they should not have or his score?

---

About them telling him that they were mandated to pull his score. Looks like in the end it worked out. Shouldn't be a problem with the way the scoring algorithm works, and I remember reading something in the auto loan guide about going into the dealership with your own financing, report, and score and seeing if the dealer pulls a better score (due to auto-enhanced algorithm) and/or beats your financing. 

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They could do that ONLY if you authorized it.  Having your own financing means just that, the car dealership is out of the picture whether they want to be or not. 

However, by them telling the OP they were mandated to do so, 1).  They told a fib and  2).  pretty much suckered him in.

If OP wants to fight it he does have grounds to do so.

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All too true. But I guess the point I was trying to make is with that rate, I wouldn't bother.