Auto Loan (long)

Discussion in 'Credit Talk' started by newcomer2, Dec 4, 2000.

  1. newcomer2

    newcomer2 Guest

    Hi everyone..
    Today I just got some depressing info from the Finance company I got my wifes auto loan from. I called them today and a rep told me they don't report to the CRA's . I took the loan aprox.. 6 months ago . Before that anther rep had told me that they report monthly and at the time of the loan the manager at the finance company promised that i would find the loan on the reports after six months. So I was exteremly pissed and I went to the main office and asked to speak to the manager an was told by his assistant to mail him a cirtified letter and that he would get back to me as soon as he can. I know for a fact that they are not reporting it so that we will not be able to refinance and get a better interest rate then their killer interest rate, and they play that trick on people who don;t know anything about credit. I mentioned all that in my letter, and asked the manager to live up to his promise. my question is this .1) is this legal ? for them not to report after all it;s a car not a credit card and the payment is close to 400.. so that is something that i don't want our credit profile to miss out on.
    2) could I manually input this in our reports with this paper they give me about our relationship with them, through the CRA;s ?
    Thankx in advance everyone,
  2. Carrot

    Carrot Guest

    You can request that the CRAs report the loan. YOu might want to send something like this:

    Please include in my credit report the additional information attached.
    According to the Fair Credit Reporting Act of 1996, I am permitted to add relevant credit history to my credit report. This will more fairly reflect my consumer and payment history. Therefore, I request that you add the enclosed payment history to my credit files.
    Please inform me within 30 days that the additional credit information has been included by sending my updated credit report to my address below.
    According to the Fair Credit Reporting Act of 1996, "A consumer's credit report should reflect completeness and accuracy within a reasonable time after notification by the consumer."
    Social Security Number
  3. Killer

    Killer Guest


    Hold your horses! This could be a blessing! You see a loan from a finance company on your report is not good! Take it from me! I have one and it's killing my score! Cap1 denied me secured card because of it! You see it's going to hurt your credit in 2 ways!'s a finance will cause your debt ratio to look bad! Because it's high interest loan, the balance will creep down! So take advantage and apply for something else that reports knowing you have a secret that's not getting counted! When you get ready to re-finance show your billing statements which will have due dates and dates received.
  4. newcomer2

    newcomer2 Guest

    Thankx alot Carrot I printed your your post and I will definatly do that if the manager dosn't report that loan.
    good luck ,
  5. newcomer2

    newcomer2 Guest

    Hi killer ...
    The Fact that it is a Finance company might hurt my score it's true. But I already have more than I need in credit cards and i'm not planning on applying for cerdit any time soon. And I'm planning to pay the whole balance of by mid 2001. So my next Car loan wouldn't be classified as a first time buyer. never the less I don't see why a finance company would hurt your credit to the point where you cant get a regular car loan after that specially if it's a bulky monthly payment and never late. My credit union refused to refinance it beacuse it wasn't on the credit report and that's all the loan officer sees, no extra payments where sent like payment history of the loan etc.
    was the only reason you where denied a secured card the fact that you had a finance company loan? One other question is how would a lender know it's a finance company. the company is called A-l Financial.. so i would take it would report as A-L financial not finance.?
  6. Killer

    Killer Guest

    I was denied secured card because my income/debt ratio wasn't good. My loan was new therefore the balance was high. In addition, the denial letter said something like "new account or inquiry by a finance company"

    Did you offer your credit union your monthly statements showing you always paid on-time?
  7. newcomer2

    newcomer2 Guest

    I c what you mean killer ..
    They weren't interested in anything besides the credit report ! and I had Explained to the customer service rep that It is not on my report by she's wasn;t the one that makes the decison it was the loan officers who recive the application through the computer, anther reason I got the deniel was because I've got alot of accounts with high balances .
  8. Killer

    Killer Guest

    So if the account had been on the report your balances would have been higher?
  9. newcomer2

    newcomer2 Guest

    But I would think At that point it would indicate that I truly was paying on the account on time . And that The loan was for a ligitment refinance. That was the feeling I got from the rep. But At the time I applied it probably looked as if I had just got a loan with someone else that's why they wheren't reporting, although it's been 6 months, at least from the point of view of the loan offcier since he only looks at the report.
  10. Killer

    Killer Guest

    I see..keep us posted! I would like to know how quickly the account was reported after you send the letter. Thanks
  11. newcomer2

    newcomer2 Guest

    I will
    Thankx for your Advice killer..
  12. mj

    mj Well-Known Member

    WHOA... guys/gals...

    1) Define -precisely- what the reason code given to you was. Was it debt-to-income ratio or balance-to-limit ratio? Installment loans (home, auto) do not count in the balance-to-limit or utilization% equation.

    2)Finance co. does lower the score- but we don't really know by how much. What was the rest of your credit like? Cap1 is pretty lenient with their secured cards. Unsatisfied judgements, leins, garnishments, or a BK in progress I could see, but score only?

    3) CRAs know it's a finance co. because that's what they were identified when they joined (anyone reporting info to a CRA must fill out a pretty detailed set of forms, indicating type of business). It's not just by name.

    My $0.02, try to add it manually. Depending on what your credit looks like, it probably will help more than hurt.

    Good luck!
  13. Killer

    Killer Guest


    Because I do not have an unsatisfied judgements, nor leins, nor garnishments, nor a BK, I was convinced Cap1 denied because of relatively new installment loan. I understand that CRA's know who is finance company and who isn't. I thought since my report read "Wells Fargo" and not "Wells Fargo Financial" I was getting away. But I learned differently.

    Now you say that if the installment loan is auto it does not count in the balance to limit. That would make sense. However, Cap1 denied saying what I owed on all accounts was too high! Besides my installment loan, my owed amounts are small compared to my income. Therefore I was thinking they did count my installment.

    Cap1 did say that I had a current delinquency. I really don't. It's an account that's actually closed but the creditor won't report it as such. Because the account is still collectable, I can't dispute. Maybe this is the real reason Cap1 and others have denied me. Maybe all the other reasons were routinely listed. I really don't know. But to be trurned by Cap1 for secured is pretty bad!

    Do you know how an "installment sales contract" affects credit? I recently purchased a computer and it appears as such. (It wasn't showing when Cap1 denied me.)
  14. mj

    mj Well-Known Member

    RE: MJ

    WHen they decline, they have to give you the 4 reasons the score was low - in order - so take that for what it's worth.

    "Balances too high" is a common one, but it's different than "balances too high in proportion to credit limit" or "high utilization of revolving debt".

    It seems like it's come to the point that we need "credit advocates" to help decipher what the hell FICO means!

    Good luck,

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