My husband and I bought a new car last May and his TransUnion report shows multiple hard inquiries from rate shopping. At the time, it took a pretty good hit to his credit score for shopping around (20+ points). We finance our car directly through Honda, have made all payments on time, and went about our business. A couple of days ago, we applied for a mortgage and were horrified to see that his TransUnion score dropped 31 points for 1 hard inquiry. We called Credco and they said that's normal. We also called TransUnion who verified nothing else had changed on his credit report that would negatively affect him other than that inquiry. We called our mortgage guy worried that this will hurt our mortgage changes, and he called Credco directly. They said the drop is not from their inquiry. So, I did my own digging and found out that what TransUnion did when we ran the one hard hit was re-factor in all the hard inquiries from a year plus ago for loans we didn't go with. Our mortgage guys says this isn't allowed and we may have a lawsuit on our hands. I don't want to sue, I just want those inquiries un-factored so his score only takes the hit from the one inquiry we actually did make like it should have. This only happened with TransUnion. Equifax and Experian reported/reacted normally. Has anyone seen this happen before?? We are at a total loss and if we can't get the house we've found because of TransUnion, I'm going to be INCREDIBLY upset. The inquiry dates are all from May 13, 2015 except a couple from June 1, 2015.
TransUnion doesn't factor anything. TransUnion just manages your TransUnion reports. FICO scoring models are FICO products, not TransUnion products. It's the scoring model that evalutes the report data and generates a score.
Did the information in the TransUnion report change? Which scoring model are you referring to? Always be aware of the specific model when referencing scores. It sounds like it may be possible that you're referring to different scoring models. Mortgage lenders do not use the same scoring models as the ones used by creditors for credit cards and auto loans. The differences between the models may explain the scoring difference that you're seeing.
Don't assume that you only have one score with each of the 3 major CRA's. There are many scoring models used by creditors. For info on the FICO models used by creditors see the Understanding FICO Scoring subforum and its stickies.
If you're having trouble determining the models for the scores you're referring to then tell us where you're getting the scores from and we may be able to help.
So, I did my own digging and found out that what TransUnion did when we ran the one hard hit was re-factor in all the hard inquiries from a year plus ago for loans we didn't go with.
How did you determine this? What indicated to you that those hard pulls are now having a scoring impact when they were previously not?
Whether or not you go with a loan is irrelevant. It's whether or not the hard pull is on the report that matters.
I'm aware of the difference between the 3 individual bureaus, FICO (Fair Isaacs Corp), FICO 8, FICO 9, FICO 5, Vantage Scores, etc and the absolute plethora of different score variations that actually exist. Trust me, I've done my research. It is the actual TransUnion credit report that says "14 inquiries have been added to your report" and they are all from May 2015. They were added back in May 2015 and his score dropped initially then. Now, they were all just RE-ADDED after 1 hard inquiry from Credco. It seems to be an error on TU's end but they don't want to admit to it. The Vantage 3.0 Score just re-factored in all of these inquiries, even though they're over a year old. The FICO Score 8 that I can view took a hit and reflects the new inquiries as well. Is it the EXACT same one the mortgage lender sees? No. But he is concerned enough about it that we now have to do a rapid rescore and see it it makes us ineligible or hurts us enough that the interest rate changes drastically. I understand that the inquiries themselves stay on for 24 months. I also understand that they impact your score the most when they are first made and that multiple inquiries on the same day like these are treated by FICO (not the individual bureaus) as a single credit hit as they can tell you are rate shopping. That is upsetting is that TU is showing on THEIR OWN report that these are new and just added even though the date is from over a year ago and they were added to the report over a year ago.
Couple of things; explicitly where are you tracking your scores?
Secondly, the only score that matters is what the lender pulled: whatever is on your score disclosure is what you'll have unless they repull which is kinda unlikely. They should've received the pre-inquiry score anyway.
The Credco CSR, well, misstated: there is a grace period which applies for mortgage inquiries (no score impact for 30 days) and I have personal experience multiple times with Credco over the past year where their inquiries absolutely were correctly excluded.
Lastly if there is something wonky going on, you only need 2 of the 3 bureaus to not suck: what were the other two bureau scores at? Odds are it's not the old inquiries, those would've been de-duped anyway assuming you were playing with standard mortgage lenders in rate shopping... the inquiries coming off this month wouldn't help, but wouldn't hurt if you had other mortgage inquiries on there from June, TU 04 is a 45 day de-dupe from their literature.
|Total CL: $306.1k||UTL: 3%||AAoA: 6.8yrs||Baddies: 0||Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping|