Does FICO Score matter more than Credit Problems?

[Katheryne88]

Is it just me? or he has a horrible attitude?

I might be missing something. 

[Anonymous]

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@Katheryne88 wrote:

Is it just me? or he has a horrible attitude?

I might be missing something. 

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Probably just frustration and stress.  No idea what else he may be going or has gone through.

Dj - I would just keep the Hyundai man.  It's a nice car.  Pay it off ASAP, garden for a while, and get that credit report cleaned up.  Then you can possibly get your dream car 5 years down the line, or sooner.  Trading it in now is just giving you unnecessary headache and stress.  

Concerning your initial question, I would assume that your FICO score would mirror your credit report; but each lender is going to look at it differently.  Example: If you grab a random group of people and ask them all the same question: "Can I borrow $5k?"  They're all not going to say the same thing.  One person may say: "Sure!"; Another may ask: "How soon will you pay me back?";  Someone else may ask: "Will you pay me interest?";  etc. etc.   You get the point?  Everyone takes a different approach - as the dealerships may be taking with your credit report.   If you are absolutely determined to trade that car in, why focus on the guy who asked you "Will you pay me interest?"  Go search for the guy that will say: "Sure!"

[Dj4Money]

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@TRC_WA wrote:

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@Dj4Money wrote:

 As some of you may know I've been looking to trade-in my six month old Hyundai Accent. My pulled score (FICO Experian Auto 8) is now 649. It will go back up once new credit card balances are reported, right now it's 96%, it will be down to 8-9% by the middle of the month.

 I still have one charge-off ($434), one open collection ($407) and a repo (that isn't true but whatever) from 2009. I also have some school loan lates from 2009; but nobody has mentioned that being a problem. One dealer in particular believed that the repo was serious despite it being almost seven years ago and had me write a note to the underwriter explaining what happen. I didn't even have to do this when I bought the Hyundai, I find this bizarre and possibly racial motivated. 

 I based that on some recent articles and also on Honda's recent fine of $25 Million for predatory lending practices on women and minorities.

Will having a 670 Fico (660 Fico Auto 8) matter more in credit decisions than old negative information? Experian will get there first, I don't know whats holding back TU and EQ, there's less information on there, especially EQ but lower scores

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Interesting... I'm gonna go out on a limb and say that a lender requesting information regarding an auto repo is standard practice for someone with a previous auto repo who is looking to finance an auto.

(Mod Cut)

Regarding your question.. credit decisions are based on more than just scores.  I've seen 665 scores get approved... and 800 scores need to recon for the same credit card.  Your past negatives can most definitely lead to denials.

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(Mod Cut-Sarcastic reply) BLOCKED. 

[Dj4Money]

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@Anonymous wrote:

I'm confused as to why you're confused... Dealers have very little input on your rates. the only input they have is to increase them. Youre working with the bank, whether its the ford bank, your credit union, capital one, bank of america, etc, you're working with the bank. I thought anyone and everyone knew THE BANK has to accept the terms. A dealer will throw out any crazy insane number and act like you can get approved at it when you won't. they want you to app. they want you to take inquiries. they will do whatever they can to get you approved,

They have an "AGGRESSIVE FINANCE TEAM" who can get anyone approved!!! They'll claim a 1.49 interest rate. realistically knowing full well the bakn won't accept. But maybe the bank will accept you.....at a 14% interest rate. and hey. maybe the guy will accept this rate and i'll geta  sale out of this. The salesman has NO IDEA what rate you'll get approved at. he just wants you to agree to it and then MAAAYBBEEE get approved. And maybe you'll take the terms they counter with.

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 I can deal with aggressive tatics but just walking away, I wasn't desperate then, I am not now. The only place I mesed up on the Hyundai was not accepting the first draft of the contract and get a lower interest rate.

 This is one reason I want to do everything over the internet and only show up to sign the contract and drive away. I did it with the Hyundai, I don't see any reason why I can't do it again.

[Dj4Money]

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@Anonymous wrote:

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@Katheryne88 wrote:

Is it just me? or he has a horrible attitude?

I might be missing something. 

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Probably just frustration and stress.  No idea what else he may be going or has gone through.

Dj - I would just keep the Hyundai man.  It's a nice car.  Pay it off ASAP, garden for a while, and get that credit report cleaned up.  Then you can possibly get your dream car 5 years down the line, or sooner.  Trading it in now is just giving you unnecessary headache and stress.  

Concerning your initial question, I would assume that your FICO score would mirror your credit report; but each lender is going to look at it differently.  Example: If you grab a random group of people and ask them all the same question: "Can I borrow $5k?"  They're all not going to say the same thing.  One person may say: "Sure!"; Another may ask: "How soon will you pay me back?";  Someone else may ask: "Will you pay me interest?";  etc. etc.   You get the point?  Everyone takes a different approach - as the dealerships may be taking with your credit report.   If you are absolutely determined to trade that car in, why focus on the guy who asked you "Will you pay me interest?"  Go search for the guy that will say: "Sure!"

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 Long hours = 55-60 hours a week

 I am focused on finding the dealer that will say Sure/Yes. I am some what limited because the car has to have 50 State emissions on it, for example I found a great deal in Colorado but they can't legally sell me a car.

 Most of the deals have been stuck on getting market value for my Hyundai.

 Five years from now priorities will change. I can still get this and if anything changes I am future proofing a bit. I don't know if I will be able to come back too it.

 Right now I might wait until after the first of the year.

[Anonymous]

What interest rate are you paying now? Have you just made the regular payments? If so, after 6 motnhs you're probably underwater on the loan. Auto loans are front loaded on interest, so you're not paying much to principal, especially at higher interest rates. In the meantime there is high depreciation in the first few months. That plus a repo doesn't make you very attractive to lenders. 

Additionally, there are tiers for lending. I was just approved For a 26K loan sign and drive. At 29K Ford Motor Credit got nervous and wanted me to start putting money down. So I just stuck with 26K because I didn't want to (1.9 on 60 months). Also the car payment is documented less than 10% of my take home. I've never had a car loan where they didn't ask for some kind of proof of income by the way, the fact that hyundai didn't is not the norm in the industry.

Additionally, Ford Motor Credit pulled EX only for me so those are the scores you need to look at. Since the repo have you had a fully paid off auto loan? Not paid off from a trade-in. That matters more than the repo, because banks are only concerned with getting their money + the interest they loaned you at, or a significant portion. 

Do you have a down payment? If they try to roll ANY of your hyundai into a new loan your Loan To Value ratio will be shot, and don't forget on a more expensive car taxes are higher, and that is not part of your value either, just loan. Once you get to 100% and over LTV, they look for more solid credit profiles. 

Point being, it's pretty complex, repos really mess that up (I know from experience). Just wait until it's gone, it will change the game, 

[Dj4Money]

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@Anonymous wrote:

What interest rate are you paying now? Have you just made the regular payments? If so, after 6 motnhs you're probably underwater on the loan. Auto loans are front loaded on interest, so you're not paying much to principal, especially at higher interest rates. In the meantime there is high depreciation in the first few months. That plus a repo doesn't make you very attractive to lenders. 

Additionally, there are tiers for lending. I was just approved For a 26K loan sign and drive. At 29K Ford Motor Credit got nervous and wanted me to start putting money down. So I just stuck with 26K because I didn't want to (1.9 on 60 months). Also the car payment is documented less than 10% of my take home. I've never had a car loan where they didn't ask for some kind of proof of income by the way, the fact that Hyundai didn't is not the norm in the industry.

Additionally, Ford Motor Credit pulled EX only for me so those are the scores you need to look at. Since the repo have you had a fully paid off auto loan? Not paid off from a trade-in. That matters more than the repo, because banks are only concerned with getting their money + the interest they loaned you at, or a significant portion. 

Do you have a down payment? If they try to roll ANY of your Hyundai into a new loan your Loan To Value ratio will be shot, and don't forget on a more expensive car taxes are higher, and that is not part of your value either, just loan. Once you get to 100% and over LTV, they look for more solid credit profiles. 

Point being, it's pretty complex, repos really mess that up (I know from experience). Just wait until it's gone, it will change the game, 

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  Current interest rate is 18.65%

 I've made all the payments on-time, of course I am under water. but.... Because my plates/fees and sales tax were not rolled into the loan like it typically is, I owe less than most people do in a similar situation. If I get fair market value for the car, it owe just over $3,000 of negative balance.

 Nobody asked for income verification accept on the credit app I did online; I didn't submit pay stubs or anything else.

 I know there are tiers to lending, reportedly I was Tier 4 asking for $30,000+. Whenever I asked what sort of downpayment they wanted, one dealer said about $6,000; DING, DING, DING, DING! Further investigation the same dealer said about $26,000 OTD.

 So now we're in his life or death struggle -

 I want highest trade value and the lowest price. Most dealers just won't walk the plank for that; maybe if I catch a few at the end of the month as they aren't meeting sales targets, it's possible they'll take that lost but most of the time....

 I got a letter from Ford Credit late last week, they denied me but didn't say why. This was interesting, so I called Ford Credit today and they are going to send me a letter stating why. The lady on the phone said usually these types of denials are conditional, IE the deal needs to be constructed a certain way, down or less money/less car, etc. This further cements that Ford feels most comfortable at $26,000.

 Any more than that I have to start putting down money. I am trying to avoid that for various reasons. I know Ford pulls EX which happens to me my highest score, it peaked at 657 (Auto 8 654) at the start of his mess which is a bit complicated. Above I mentioned I wasn't charged taxes or license fees up front. I paid those later, in fact I spent the last month paying those ($1878) including a smog test.

 So while most of you pay over time. I paid mine up front....  The byproduct of that was constantly using my credit cards, they are all maxed out now. I will spend the rest of August paying those down to 8-9% not a big deal.

 My current LTV is 89%.... I have checked LTV at various times, its under 100%. My payment is about 22% of income and I can easily afford it even with the elevated interest rate.

 I don't mind rolling the negative I have other things I wanna do with my cash. I've done the math, I can get what I want and still have roughly the same payment.

 WIth all the incentives I can get, even the optional ones, it's knocking another $2,500 off the price and that's if I don't take Ford financing. if I do, that's an additional $750 for $3250

 When my credit cards update and depending on what that Ford Credit letter says will determine what and when I try this again. I can really use the 90 day payment delay they are offering right now.

 
 My EX Score should hit 660-670 with ease with the balances below 9% 

 Waiting until it's gone (Repo) won't make much difference, no changes for the 2016 except Sync 3 and Google Auto. The updates come for the '15 model year (suspension tweaks, electric power steering tweaks and minor sheet metal changes with new tail lights). I also won't spend much more than what's being bandied about now. 

[gdale6]

The only warning I am going to give, knock off talk of race cards and everyones post must be FSR any further violations will result in the appropriate actions being taken against the offender(s).

http://ficoforums.myfico.com/t5/Bankruptcy/Friendly-Supportive-and-Respectful-2-6-14/td-p/2797125

gdale6

myFico Moderator

[TRC_WA]

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@gdale6 wrote:

The only warning I am going to give, knock off talk of race cards and everyones post must be FSR any further violations will result in the appropriate actions being taken against the offender(s).

http://ficoforums.myfico.com/t5/Bankruptcy/Friendly-Supportive-and-Respectful-2-6-14/td-p/2797125

gdale6

myFico Moderator

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Is it just me or has this thread run its course?

[taxi818]

I can understand your frustation op. You can always walk out the door if you feel the dealer is not treating you right. They are in the business to sell cars and you should do your homework before going into any dealer. Go pass lot. Get vin number. Get car fax. Look into any rebates and incentives from Msrp. and also ask the dealer to provide you with their invoice. at that point you know what they paid for the car. Now don't expect to get it below that. But you can leave a bone on there for them. As far as your hyunai. only being 6 months. it really is not a lot of history. You may have to give a little on ths to get out of the car. I know what you are saying that you are only 3k under water at this point. But since you want a bigger better machine. There is no reason to focus so much on payments as opposed to the total value of the car. no matter what they should be able to get the payment where you want them. As stated. The dealers don't control the finance rates. Even with your scores. someone will finance you as they can always repo the car. Your old repo being on your report is a turn off not matter how old. However since someone Hyundai took a chance on you. It should not be that difficult. I wish you all the luck in the world. Good luck.