topic Re: Auto Loan Is Killing My Utilization.. Help Please?? in Rebuilding Your Credit

Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 05:25:47 GMT

I am in the process of huge score building to purchase a home, managed to get 95% of the bad collections off (havnt reported yet), so i was told by several people to get an auto loan.

Now here is how equifax is showing my loan on my report.

The loan was for $6050, shows I currently owe $5600, so its showing as an installment loan, and my available credit is $450??? The age of the loan is 6 months, I have been paying $250 a month..

This is tricking my credit report into thinking its some kind of credit card or something? I dont know.. but on the score estimator, it shows my utilization at 1000% and shows if I drop it down to 6% that I will be at a range of 650+

Should I just pay this off, or pay it all down and leave 1000$? or should I contact the auto loan company and ask them to fix this? I dont have any type of credit cards showing on the report (yet, next month a new one will)

or could it be because of the 7 bad collections that are making the utilization so high? (These collections are all paid off and due for deletion this month)

Re: Auto Loan Is Killing My Utilization.. Help Please??

stillirise — Fri, 05 Apr 2013 05:32:37 GMT

I worried about an auto loan too so I paid it down 25% in the first few months just to be safe. However, I have since discovered they really seem to just look at your revolving credit. Credit cards should not go over 15% especially if you are trying to rebuild credit. That's my opinion Im definitely no expert. I hope this helps.

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 05:36:19 GMT

Neither the auto loan or collections are counted in revolving utilization. They shouldn't be at any rate.

Can you post a pic of how your auto loan is reporting? It says installment but if it is saying something about available credit something isn't right.

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 05:42:45 GMT

Once again, I do not have any credit cards reporting yet, i just opened my first one, havnt even received the card yet.

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 05:48:27 GMT

It isn't your auto loan, that is 93%.

This is your only TL besides collections?

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 05:50:42 GMT

yes sir, that is my only tradeline

could it be showing utilization because I dont have any revolving tradelines?

I have never owned a credit card in my life, all of my collections were for medical bills which thank god are now all paid off

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 05:52:44 GMT

No. Installment has a separate utilization than revolving.

All of the CAs are 0 so that can't be it.

Where is that information from?

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 05:53:28 GMT

equifax credit report

Re: Auto Loan Is Killing My Utilization.. Help Please??

Deltadog03 — Fri, 05 Apr 2013 06:02:19 GMT

Hmmm. That's puzzling.

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 06:06:02 GMT

oh no... please dont tell me i have a nightmare in front of me

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 06:10:35 GMT

Just to be clear, it is not a FICO simulator but one from EQ?

Are all of your paid collections showing a 0 balance?

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 06:12:31 GMT

yes, this is right from equifax i am a member of their 20$/month plan

and no, all of my collections arent showing paid or deleted yet because i just paid them all off yesterday, most of them said itll take 30-60 days to fall off, but i was thinking about faxing the 3 burea's the deletion letters to speed it up.

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 06:16:18 GMT

Ok. Well, since the collections aren't showing paid and this is from EQ simulator, they have probably counted those into your utilization. Not supposed to but it does happen.

Don't worry about it. Not a FICO simulator and it is based on their score.

Re: Auto Loan Is Killing My Utilization.. Help Please??

fishbjc — Fri, 05 Apr 2013 16:43:18 GMT

cancel Eq, go with Score Watch. Their system is goofy to say the least. Congrats on getting the collections paid off!

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 21:26:04 GMT

Thanks, I will finish up this month with equifax and then switch over to score watch.

Now I only have 2 collections on the report, and they will show up as paid in full, i will also have a new credit card TL showing with a 500$ limit, thinking about opening up another CC with a $500 limit.

i am literrally jumping out of my pants waiting for my damn score to update!

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 21:38:48 GMT

I just bit the bullet with the myfico score watch, and it tells me my equifax score is only 564.. while equfiax themselfs is telling me my score is 585.

Can someone please explain ? i would assume equifax would be more correct then myfico?

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 21:48:11 GMT

The score at myfico is your FICO score. The score at Equifax is a FAKO, i.e., a credit score that is theirs and not a FICO. Most lenders use FICOs. The Equifax score from myfico will match the Equifax FICO that a mortgage lender will pull.

Equifax has their own ScoreWatch product, and I believe that's the only way you can get an Equifax FICO from them instead of their own scoring model.

On a side note, there are 3 TU FICO options - TU98 (available here), TU04 (the ones lenders tend to use), and TU08 (which you can get if you open a Walmart card of some sort).

To add to the confusion, there are enhanced FICOs for auto loans, and possibly for other types of credit. The auto-enhanced ones emphasize your payment history for auto loans.

So, no, the EQ score from them is NOT more accurate than your FICO from here.

Re: Auto Loan Is Killing My Utilization.. Help Please??

Anonymous — Fri, 05 Apr 2013 21:57:11 GMT

EQ does sell their FICO score alone. It is just hard to find.

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 21:59:57 GMT

thats just great. I hope to god when all these collections fall off I get a huge score bump, i have a lot more to do then i initially thought

Re: Auto Loan Is Killing My Utilization.. Help Please??

djpolo — Fri, 05 Apr 2013 22:04:57 GMT

can someone tell me which one the mortgage lenders use?

I also just purchased a report from transunion on this site and its showing me at a 631, where equifax shows me at 619 for transunion on the 3 in 1 score report