Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Auto Credit and Scoring
Even as a sole pro he can finance the truck without a personal guarantee. Check out the Biz credit on CB for more info.
Member
breakingthecode
Posts: 9
Registered: ‎05-06-2007
Re: Auto Credit and Scoring

breakingthecode wrote:
What, if anything, can I do to lesson this?  Do I need to wait so many years or just take on loans at these higher APR's (the dealership said they would do it for a jaw dropping 18%) for smaller loan amounts?



Aside from trying to dispute any inaccuracies, you just have to wait it out. When did the account first go delinquent?

I can't recall exactly, but it was around November of '01, right after 9-11 and I was unemployeed...my finances to a quick and huge dive.  I think the charge off was done by about April of '02, but I'd need to pull my files for exact dates.  Is there a certain period of time that I'll need to wait or is that as mysterous as the "Auto Fico" scores?
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Auto Credit and Scoring


breakingthecode wrote:

breakingthecode wrote:
What, if anything, can I do to lesson this?  Do I need to wait so many years or just take on loans at these higher APR's (the dealership said they would do it for a jaw dropping 18%) for smaller loan amounts?



Aside from trying to dispute any inaccuracies, you just have to wait it out. When did the account first go delinquent?

I can't recall exactly, but it was around November of '01, right after 9-11 and I was unemployeed...my finances to a quick and huge dive.  I think the charge off was done by about April of '02, but I'd need to pull my files for exact dates.  Is there a certain period of time that I'll need to wait or is that as mysterous as the "Auto Fico" scores?

There is not magical time to wait. I would shop around for the best rate.
Member
breakingthecode
Posts: 9
Registered: ‎05-06-2007
Re: Auto Credit and Scoring


Tuscani wrote:


breakingthecode wrote:

breakingthecode wrote:
What, if anything, can I do to lesson this? Do I need to wait so many years or just take on loans at these higher APR's (the dealership said they would do it for a jaw dropping 18%) for smaller loan amounts?



Aside from trying to dispute any inaccuracies, you just have to wait it out. When did the account first go delinquent?

I can't recall exactly, but it was around November of '01, right after 9-11 and I was unemployeed...my finances to a quick and huge dive. I think the charge off was done by about April of '02, but I'd need to pull my files for exact dates. Is there a certain period of time that I'll need to wait or is that as mysterous as the "Auto Fico" scores?

There is not magical time to wait. I would shop around for the best rate.



Won't 'shopping around' put dings against my score or raise flags? Do/would lenders understand that I'm shopping around? Also, would it be advisable for me to recheck my fico scores before shopping around or would they change drastically in a 3~4 month period (I don't have any outstanding, current credit debt)?
Contributor
cinoeye
Posts: 132
Registered: ‎05-02-2007
Re: Auto Credit and Scoring
This is great, thank you Tuscani!
:smileyhappy:
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Auto Credit and Scoring


breakingthecode wrote:


Tuscani wrote:


breakingthecode wrote:

breakingthecode wrote:
What, if anything, can I do to lesson this? Do I need to wait so many years or just take on loans at these higher APR's (the dealership said they would do it for a jaw dropping 18%) for smaller loan amounts?



Aside from trying to dispute any inaccuracies, you just have to wait it out. When did the account first go delinquent?

I can't recall exactly, but it was around November of '01, right after 9-11 and I was unemployeed...my finances to a quick and huge dive. I think the charge off was done by about April of '02, but I'd need to pull my files for exact dates. Is there a certain period of time that I'll need to wait or is that as mysterous as the "Auto Fico" scores?

There is not magical time to wait. I would shop around for the best rate.



Won't 'shopping around' put dings against my score or raise flags? Do/would lenders understand that I'm shopping around? Also, would it be advisable for me to recheck my fico scores before shopping around or would they change drastically in a 3~4 month period (I don't have any outstanding, current credit debt)?

No. Auto and Home Inqs count as one against your score. This is because FICO and lenders understand the need to shop around.
Member
breakingthecode
Posts: 9
Registered: ‎05-06-2007
Re: Auto Credit and Scoring


Tuscani wrote:


breakingthecode wrote:


Tuscani wrote:


breakingthecode wrote:

breakingthecode wrote:
What, if anything, can I do to lesson this? Do I need to wait so many years or just take on loans at these higher APR's (the dealership said they would do it for a jaw dropping 18%) for smaller loan amounts?



Aside from trying to dispute any inaccuracies, you just have to wait it out. When did the account first go delinquent?

I can't recall exactly, but it was around November of '01, right after 9-11 and I was unemployeed...my finances to a quick and huge dive. I think the charge off was done by about April of '02, but I'd need to pull my files for exact dates. Is there a certain period of time that I'll need to wait or is that as mysterous as the "Auto Fico" scores?

There is not magical time to wait. I would shop around for the best rate.



Won't 'shopping around' put dings against my score or raise flags? Do/would lenders understand that I'm shopping around? Also, would it be advisable for me to recheck my fico scores before shopping around or would they change drastically in a 3~4 month period (I don't have any outstanding, current credit debt)?

No. Auto and Home Inqs count as one against your score. This is because FICO and lenders understand the need to shop around.



So then it's not like applying for credit cards then? But it does count as one point? Is that for each request? I only ask because my regular scores are just on the margin; two were a few points above and one was just below (last time I checked).
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Auto Credit and Scoring
[ Edited ]

 

So then it's not like applying for credit cards then? But it does count as one point? Is that for each request? I only ask because my regular scores are just on the margin; two were a few points above and one was just below (last time I checked).

 
The only difference between home\auto and CCs is FICO calculates all auto\home Inqs as one. For a CC your score gets dinged for every Inq.
 
Here are some examples...
 
Auto or Home Shopping:
 
01-01-2007 -- AUTO1 Inq
01-01-2007 -- AUTO2 Inq
01-02-2007-- AUTO3 Inq
01-10-2007 -- AUTO4 Inq
Total Inqs: 4
Total Inqs Counting Against Score: 1
Est Points Lost: 2-9
 
01-16-2007 -- AUTO5 Inq
 
Whoops.. you just got dinged again for AUTO5 since the 14 days from your orginal inq is up.
 
Credit Cards:
 
01-01-2007 -- CC1 Inq
01-01-2007 -- CC2 Inq
01-02-2007-- CC3 Inq
Total Inqs: 3
Total Inqs Counting against Score: 3
Est Points Lost: 2-9 PER INQ
 
As you can see, Inqs generally cost you 2-9pts each (YMMV). Remember, with any inq your total number of inqs still increases. So while scorewise you only get dinged once with auto\home, all the inqs still show up, and you total Inq count still increases.
 
There is a chance that the auto\home creditor pulling your reports could incorretly code the Inq. If this happens, you could get dinged for all just like any other Inq. That is why it is important to compare your scores before and after rate shopping. I know I am being paranoid, but depending on how much comparing you do, incorrectly coded Inqs could add up start to hurt you real quick.
 
Make sense?
 
 


Message Edited by Tuscani on 05-12-2007 06:05 PM
Member
breakingthecode
Posts: 9
Registered: ‎05-06-2007
Re: Auto Credit and Scoring
[ Edited ]

Tuscani wrote:
So then it's not like applying for credit cards then? But it does count as one point? Is that for each request? I only ask because my regular scores are just on the margin; two were a few points above and one was just below (last time I checked).

The only difference between home\auto and CCs is FICO calculates all auto\home Inqs as one. For a CC your score gets dinged for every Inq.
Here are some examples...
Auto or Home Shopping:
01-01-2007 -- AUTO1 Inq
01-01-2007 -- AUTO2 Inq
01-02-2007-- AUTO3 Inq
01-10-2007 -- AUTO4 Inq
Total Inqs: 4
Total Inqs Counting Against Score: 1
Est Points Lost: 2-9
01-16-2007 -- AUTO5 Inq
Whoops.. you just got dinged again for AUTO5 since the 14 days from your orginal inq is up.
Credit Cards:
01-01-2007 -- CC1 Inq
01-01-2007 -- CC2 Inq
01-02-2007-- CC3 Inq
Total Inqs: 3
Total Inqs Counting against Score: 3
Est Points Lost: 2-9 PER INQ
As you can see, Inqs generally cost you 2-9pts each (YMMV). Remember, with any inq your total number of inqs still increases. So while scorewise you only get dinged once with auto\home, all the inqs still show up, and you total Inq count still increases.
There is a chance that the auto\home creditor pulling your reports could incorretly code the Inq. If this happens, you could get dinged for all just like any other Inq. That is why it is important to compare your scores before and after rate shopping. I know I am being paranoid, but depending on how much comparing you do, incorrectly coded Inqs could add up start to hurt you real quick.
Make sense?
Message Edited by Tuscani on 05-12-2007 06:05 PM
So, I only have 14 days from my original inquiry? I'm going to see another dealer this Friday, so it should fall within that time, but I don't know if I'll take their offer or look at other places. I've spoken with a rep for this other dealership and he suggested that I try credit unions for the loan if they couldn't get me a student break, but my write off was to a credit union.
I tried 5 years ago to get just a savings account with a local c/u, but they denied me because of my defaulted loan, so I'm very leery of what might happen. Would I possibly have to open an account with one in order to get the loan?

I know, I'm asking a lot of questions, but this is a big step for me financially.

Message Edited by breakingthecode on 05-16-2007 10:57 PM
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
Re: Auto Credit and Scoring


So, I only have 14 days from my original inquiry? I'm going to see another dealer this Friday, so it should fall within that time, but I don't know if I'll take their offer or look at other places. I've spoken with a rep for this other dealership and he suggested that I try credit unions for the loan if they couldn't get me a student break, but my write off was to a credit union.
I tried 5 years ago to get just a savings account with a local c/u, but they denied me because of my defaulted loan, so I'm very leery of what might happen. Would I possibly have to open an account with one in order to get the loan?

I know, I'm asking a lot of questions, but this is a big step for me financially.

Message Edited by breakingthecode on 05-16-2007 10:57 PM

Correct, 14 days from original Inq. You will probably have to become a member to get a loan.
 
No worries, ask as many questions as you would like.