I plan to purchase a new car in about 6 months, and want to prepare myself for the impact that an auto-enhanced FICO score might have. A little history... I've purchased two cars (new) in the past. The first car, purchased in 1991 through Toyota Motor Finance (or whatever it is called), was paid-off early and perfectly. The second car, purchased in 2000 was financed by a different company (I'll have to look up the name). Towards the middle of the 60-month repayment period, I requested and received a forbearance for medical reasons. Prior to that, I paid the loan on-time every month. I was under the impression (can't remember if they told me or if I imagined it) that they would extend the loan period based on the length of the forbearance. Wrong! As the end of the 60-month loan period neared, I received a lump-sum bill for 5 - 6 months of monthly payments plus interest - due immediately. At the time, I could not pay it as a lump-sum...so I attempted to negotiate with them. They wouldn't hear of it, SO... I paid the lump-sum off over a 4 - 5 month period. They sent my loan to collections, and began reporting my loan as 90+ day late over several months. This was back in 2005.
The auto loans no longer shows up on my Equifax or TransUnion reports. Will either one still impact an auto-enhanced FICO?
Thanks!
Starting Score: 534 EQ FICO: 10/11
@TapDancer324 wrote:The auto loans no longer shows up on my Equifax or TransUnion reports. Will either one still impact an auto-enhanced FICO?
Thanks!
If they are no longer on file with Equifax and TU, they won't impact your auto-enhanced FICO with these bureaus. Keep in mind that the CONTENT of an auto (or whatever)-enhanced credit-report and its score is the same as what you can see - the difference is that they focus more on your car-loans, mortgages etc.
Just like a school report card: Everybody sees the same card...but not every subject might be as important as the other when applying for a specific job..
@ScoreBooster wrote:
@TapDancer324 wrote:The auto loans no longer shows up on my Equifax or TransUnion reports. Will either one still impact an auto-enhanced FICO?
Thanks!
If they are no longer on file with Equifax and TU, they won't impact your auto-enhanced FICO with these bureaus. Keep in mind that the CONTENT of an auto (or whatever)-enhanced credit-report and its score is the same as what you can see - the difference is that they focus more on your car-loans, mortgages etc.
Just like a school report card: Everybody sees the same card...but not every subject might be as important as the other when applying for a specific job..
UPDATE, UPDATE...
I discovered that I was wrong (partially) when I posted my original message about my last car loan. As recommended by others in this forum, I pulled a free credit report from all 3 CRAs. As a reminder, my last car loan was paid off in 2005, and the medical deferment that I received back-fired on me at the end of the loan - resulting in several lates.
Well, the loan is not listed at all on my EQ report. It's listed on TU as "Paid as Agreed" - with no negative history. It's listed on the EX report with all of the crap. I tried (unsuccessfully) to dispute the negatives in 2006, before I bought my house, and the status on my EX report says, "This item remains unchanged from our processing of your dispute in Jun 2006." The "Last Reported" date is 12/05. Should I request that EX update the status of this item in the hopes that the lender will not report anything negative? ...or will I risk the bad information being added to the other 2 reports? Not sure how that works. Also, if a lender pulls all 3 reports to make a decision about my car loan, would they tend to use the highest score, the middle score or what? My current vehicle will have to be replaced within the next few months and, like everyone else, I want to get the best deal possible for my situation.
Any suggestions would be greatly appreciated!
@TapDancer324 wrote:
@ScoreBooster wrote:
@TapDancer324 wrote:The auto loans no longer shows up on my Equifax or TransUnion reports. Will either one still impact an auto-enhanced FICO?
Thanks!
If they are no longer on file with Equifax and TU, they won't impact your auto-enhanced FICO with these bureaus. Keep in mind that the CONTENT of an auto (or whatever)-enhanced credit-report and its score is the same as what you can see - the difference is that they focus more on your car-loans, mortgages etc.
Just like a school report card: Everybody sees the same card...but not every subject might be as important as the other when applying for a specific job..
UPDATE, UPDATE...
I discovered that I was wrong (partially) when I posted my original message about my last car loan. As recommended by others in this forum, I pulled a free credit report from all 3 CRAs. As a reminder, my last car loan was paid off in 2005, and the medical deferment that I received back-fired on me at the end of the loan - resulting in several lates.
Well, the loan is not listed at all on my EQ report. It's listed on TU as "Paid as Agreed" - with no negative history. It's listed on the EX report with all of the crap. I tried (unsuccessfully) to dispute the negatives in 2006, before I bought my house, and the status on my EX report says, "This item remains unchanged from our processing of your dispute in Jun 2006." The "Last Reported" date is 12/05. Should I request that EX update the status of this item in the hopes that the lender will not report anything negative? ...or will I risk the bad information being added to the other 2 reports? Not sure how that works. Also, if a lender pulls all 3 reports to make a decision about my car loan, would they tend to use the highest score, the middle score or what? My current vehicle will have to be replaced within the next few months and, like everyone else, I want to get the best deal possible for my situation.
Any suggestions would be greatly appreciated!
My advice is to not do anything. It sounds like this account is very close to either dropping off your reports or at least the late payments/CO status dropping. What was the DOFD of this account ~ the first deliquency that occured prior to the account being charged off ? It should only show negative information from 7.5 years from the point in time that is shows charged off.
I looked at the report again... The status is "Paid, Closed." The DOFD is April 2005.
Ok, thanks for the info. I do see where the EX report says that "this information is generally removed seven years from the initial missed payment that lead to the delinquency." I may just pull EX again after April to see how the CRA is going to handle the listing. Not that it matters now, but would the account say "charge off" if it was treated as such? Just curious, as this report is formatted differently than the others. The loan shows 30-days late at the time of payoff.
Again, thanks.