topic Re: Auto Loan Approval - Credit Dispute in Auto Loans

Auto Loan Approval - Credit Dispute

Anonymous — Wed, 09 Nov 2011 22:27:59 GMT

Hi guys. I'm looking to get a new car this month. Checked my credit report and just noticed that I have a tradeline reporting 30 days late (for 3 years now), even though I'm paying the credit card every single month under a payment arrangement. (Yeah, I haven't checked my credit for that long.)

Question: If I dispute this right now and I apply for a car loan, would this account still be included in my credit score? Would it be excluded from the credit score calculation if it shows "in dipute?" It looks like the whole dispute process takes a while, and I don't know if I will get the results soon enough to be able to get a car this month.

Would appreciate any input. Thanks!

Re: Auto Loan Approval - Credit Dispute

pizzadude — Wed, 09 Nov 2011 21:02:46 GMT

Hi ! Welcome to the forums !

When you initiate a dispute with the CRA, the tradeline is removed from FICO® scoring, however it will still be visible on your report listed as disputed.

You would lose the positve factors ( Age of account ) but also would lose the negative ( lates ).

So anyone manually reviewing your report will see the TL, but it just won't be factored into your score.

Is this the only negative on your reports ? Make sure that you check all 3 bureaus, TU , EQ and EX, and you will need to dispute it with all 3 as well.

Good luck !

Re: Auto Loan Approval - Credit Dispute

Anonymous — Wed, 09 Nov 2011 22:26:04 GMT

Thanks for your feedback!

Yes, it's the only thing negative on my report. I haven't checked my FICO, but I'm sure that tradeline is pulling down my scores. It's showing as 30-day late every month since 2008!

I will definitely dispute with all 3 CRAs. My '95 car has finally given up, so I need to get a new one asap. I think it's about time...

Thanks again!

Re: Auto Loan Approval - Credit Dispute

pizzadude — Thu, 10 Nov 2011 02:23:59 GMT

Good luck with your purchase ! Let us know how it goes !

Also be sure to spend some time poking around the Auto Loans threads, there is a LOT of really good info here about the car buying process.

Re: Auto Loan Approval - Credit Dispute

cdtotten — Thu, 10 Nov 2011 13:32:18 GMT

Every situation is different, but it is normal for companies to report your balance 30 days late each month when you are under a payment arrangement. The reason is you are not making a full payment each month that would be satisfactory for a minimum payment. I.e:

January - Due $100.00, you pay $50 on payment plan

February - Due $100.00, you pay $50, but this offsets the other $50 due from January. You are 30 days late on Jan. payment.

March - Due $100.00, you pay $50, this is the first $50 of February's payment... etc.

Unless you have in writing that the payment modification will not be reported negatively, then disputing will have no effect. This is one of the reasons it is so important to get things in writing and check your reports often.

Re: Auto Loan Approval - Credit Dispute

Anonymous — Fri, 16 Dec 2011 02:32:04 GMT

Thank you, pizzadude and cdtotten for your feedback.

Went ahead and tried to resolve this directly with Discover. Of course, when I contacted their regular CS department, I was told they can't do anything about it. I even spoke to a manager, all to no avail. Decided to go up the totem pole and contacted their Executive Customer Service Dept. Explained my situation and was told that they would look into it and research the issue. After about 3 days, I got a call saying they have corrected the error and have updated with EX, EQ and TU!

After seeing the changes on my CR, I went ahead and applied for an auto loan. Got approved for a 2.99 APR!

Thanks again for your insights. Appreciate it!

Re: Auto Loan Approval - Credit Dispute

pizzadude — Mon, 19 Dec 2011 18:07:17 GMT

Wow !! That's fantastic ~ It's always rewarding to hear success stories like this !!

Time to go car shopping !!