topic Re: Credit Score Alert - Details... explanation? in General Credit Topics

Credit Score Alert - Details... explanation?

prine06 — Tue, 26 Jan 2016 17:08:10 GMT

I received an alert that my credit score went down.. the details say '" New Interest Rate on A 48 Month Auto Loan" ... I haven't applied for any auto loans... Is this possible fraud or am I misunderstanding the alert?

Re: Credit Score Alert - Details... explanation?

Anonymous — Tue, 26 Jan 2016 20:33:14 GMT

Do you have an existing auto loan?

Re: Credit Score Alert - Details... explanation?

prine06 — Tue, 26 Jan 2016 20:37:27 GMT

I do have an existing 48 month loan... but it has fixed interest... and the reported interest rate is much higher than the one I have now.

Re: Credit Score Alert - Details... explanation?

Anonymous — Tue, 26 Jan 2016 21:17:45 GMT

Call your lender and confirm any changes, ez pz.

Re: Credit Score Alert - Details... explanation?

iv — Tue, 26 Jan 2016 23:42:29 GMT

@prine06 wrote:
I received an alert that my credit score went down.. the details say '" New Interest Rate on A 48 Month Auto Loan" ... I haven't applied for any auto loans... Is this possible fraud or am I misunderstanding the alert?

You're misunderstanding the alert... but it's not just you - the way they present those notes seems to confuse people every day.

Your score was updated due to a triggering event (balance change, etc).

MyFICO then interpreted the change in score as one that crossed a possible tier threshold for an auto loan, and reported the (possible) results if you were to apply for said loan today, with that score.

It's not related to your existing loan's rate, it's not a new loan appearing, and it's not fraud.

It's just MyFICO alerting being unnecessarily confusing.

Re: Credit Score Alert - Details... explanation?

takeshi74 — Wed, 27 Jan 2016 02:50:41 GMT

@prine06 wrote:
I received an alert that my credit score went down.. the details say '" New Interest Rate on A 48 Month Auto Loan" ... I haven't applied for any auto loans... Is this possible fraud or am I misunderstanding the alert?

myFICO's monitoring is trigger based. If you're using it then make sure you understand the triggers.

http://myfico.custhelp.com/app/answers/detail/a_id/463/~/understanding-what-triggers-fico%C2%AE-3-bureau-credit-monitoring-and-fico%C2%AE-identity

Not all activity with a scoring impact is a trigger so you cannot rely on the alerts alone to detemine the cause(s) of a scoring change. To do so you have to carefully compare reports from before and after the change.