FICO Score vs. Lender-Pulled Score - I'M CONFUSED!!!

[BrownSugah66]

So....i've been working on rebuilding my credit in order to be able to purchase a much-deserved new (used) car. When my EQ and TU FICO scores reached 635 and 640, I took my chances and applied for auto loan financing. Here's the confusing part, I was denied an auto loan from EVERY finance company based on my credit score. The lender-pulled scores showed EQ 577, TU 538, and EX 508. HUH??!!!! Now I have 20 hard inquiries added to my credit files all for nothing! This is truly disappointing and frustrating.

I am needing someone to please help me understand how to determine when my credit health is good enough to seek auto loan financing again. Obviously, I can't just rely on what is being reported here on MyFico or any of the 3 credit reporting agencies.

Thank you in advance for any advice, education, or suggestions you wish to share.

[Anonymous]

I'm not sure what scoring system they used. I do know to get the best car rates you need a minimum of 660. And several inquiries only counts as one when you're shopping around for a car!

[BrownSugah66]

PrettyLady1...thank you so much for your reply! I sure hope you are right about the auto loan hard inquiries consolidating into one. So far, they are all showing individually and it's been 2 weeks.  I like your idea of holding off until my scores reach at least 660.

Thanks again!! 

[Booner72]

All of the inquiries will show - but the score will only be hit once if done within the time frame.  I've read 14 days and I've read 30 days - and this is only for auto and mortgages - inquiry clusters don't work for credit cards, etc.

I would bet money you were given some sort of Auto-enhanced FICO score which resulted in the weird numbers you were given.  It will be difficult to wait for a 660 FICO - because how would that interpret into the auto-enhanced?

Good Luck.

[Anonymous]

You're welcome. They will continue to show as individual ones but the credit bureaus only count teem as one if they were within 30 days of each other! They just refer to it as shopping around!

[BrownSugah66]

Thanks Booner and PrettyLady...you have been very helpful.  I guess I need to find out additional information about auto-enhanced scoring. I'm thinking the best thing to do next time is print off my EQ or TU credit report and FICO score from this site and taking it to my credit union to apply for a loan in person. It's worth a shot and maybe the CU will base their decision on my hard copy credit report. BUT...I will wait until my score reaches 660 - 675 before doing so.

I really appreciate your advise and insight! 

[Lel]

Basically, the auto enhanced (also known as auto industry) FICO scores give added weight to one's prior auto loan history. If someone's past auto loans were in good standing, the auto enhanced FICO scores may be higher than the "generic" versions. Conversely, past problems with auto loans can result in a lower auto enhanced score.

[BrownSugah66]

Thanks Lel...this may be the case because I had a few late pays reported on my previous car loan over the past 5 years. I guess ultimately paying the auto loan off on time doesn't really much matter.  Thanks for the reply!!!!

[Anonymous]

Hi missy,

You might want to consider sending GW (goodwill) letters in on the auto loan.  The Rebuilding Your Credit forum is a great place to get input on sending out GW's.  I also like your idea of walking into the CU with a copy of your CReport.  They're a great place to finance cars, and they may give you some good down-to-earth feedback.  If you do app for a loan with them, they'll almost certainly need to pull your credit, but IMO that's not that big of a deal.

Best wishes!

[Anonymous]

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@Anonymous wrote:

Hi missy,

You might want to consider sending GW (goodwill) letters in on the auto loan.  The Rebuilding Your Credit forum is a great place to get input on sending out GW's.  I also like your idea of walking into the CU with a copy of your CReport.  They're a great place to finance cars, and they may give you some good down-to-earth feedback.  If you do app for a loan with them, they'll almost certainly need to pull your credit, but IMO that's not that big of a deal.

Best wishes!

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+1

And, if you haven't done so already, you should hop over and visit the Rebuilding Forum. There's all sorts of great advice & cheerleaders who stand behind it to help get you on your way.