David, I see on the Wells Fargo Website how you break consumers up into "tiers" of Excellent to Fair (for auto loans). I also read the descriptions of those tiers. My question to you is: Can you shed some light on what type of scores equate to those tiers? What's the bottom score for any approval? and if I want a $30,000+ loan, do I have to have a certain score within a certain tier? I have had a relationship with Wells Fargo Financial (fully paid off auto loan that they purchased from another company-no lates). Since you guys seperate the websites like you do, I'm not sure of the relationship between the two entities (Bank vs. Financial) Any insight you can give me would be greatly appreciated. You can also private email me as well. As always...
The difference between Wells Fargo Bank and Wells Fargo Financial is that the Financial division specializes in many different types of loans for different purposes. I've been in furniture stores and jewelry stores that offer financing through Wells Fargo Financial. They also offer other types of loans for consumers with credit challenges. (ex: late payments, low scores, not enough credit history, etc.) Typically these loans have a much higher interest rate than the bank counter-part, but at least they are able to help them get the loan they need. As for the tiers, I'm not entirely positive on what constitutes "Excellent, Good, Average and Fair." I was just looking at that part of the site yesterday. Based on the Home Equity loans and HELOCs that I do, I could only imagine that a FICO of 700+ is Excellent, 680+ is Good, 620 or 600+ is Average, and 619 or 599 and below is considered Fair. I'm not sure where the tier breaks at the lower levels. The score is based off your Equifax credit report. Through Wells Fargo Bank, a 620+ score (I believe) is the minimum score for approval for a loan. However, we do consider other factors as well - especially Debt-to-Income ratios. I would try to apply online or through the bank directly before going to Wells Fargo Financial. Your rate will almost definitely be lower than WF financial if approved. If not approved, they will most definitely send your application to Wells Fargo Financial for further consideration. Hope this helps! David Kinder
Hi David, Welcome to the board and thanks for your willingness to be open, and of help. Here's my mistake of the past. As a CFP I make a noticeable income. Consequently it has not been necessary to have credit as I just buy stuff when I want it. What that means is, I have a clean CR. As in only one tradeline. (CRA's deleted another perfect tl). It's a cc with a 10 year perfect history, OPEN / NEVER LATE. Since joining the board I realize I should have been "using" credit more aggressively but the fact is I haven't. Or put another way I should have been paying someone else for the privilege of using their money. lol Apparently, the wisdom of the ages, "neither borrower nor lender be" is now damaging to me because I've had the cognoscence not to borrow money and pay interest on it. With a "clean" report, how will banks in general, and WF specifically perceive me?
David, Thanks for your honest answers. I have a couple more follow ups if you don't mind. I was a little confused about your response, you said fair is 619 or 599 or below, and the website shows rates for that tier, but then you said a minimum 620 is required for approval. So if I have a 600 score, I will or won't be approved? Would like some more guidance on that if you can. Also, are there any other "automatic" rejection criterias? I have 3 judgements from 1996 that are all PAID and will fall off first couple of months in 2003. How would this hinder me? I also did consulting for the past 11 months and just recently started a new full time job. I make plenty of money (over $5000/month after taxes), but how will a new job affect me? I understand if you don't have specifics on any of this, but my dad always told me "you never know what you can get until you ask" Thanks...
Based on this basic information, it looks like you'll have a great credit score, but just never used a lot of credit. One basis for an auto loan that any lender will look at is the existing and previous credit obligations that you've had. Is the trade line for $1,000 or $10,000? That makes a BIG difference! When I went with my fiance to buy a new car, her credit report only showed a $1,000 limit credit card and some others much smaller. The lender wanted to give her financing at 14.9% because she'd never had or used higher limits of credit. (In contrast, I had them run my report and they wanted to sell me ANOTHER CAR because I had a $5,000 credit card and a $3,000 unsecured loan (paid) and my own car loan!) If you have trouble getting a car loan, but you own your home, I'd try getting a HELOC. Rates are much lower, and because it would be secured by your residence, approval is usually much easier. Plus, the interest you do pay is tax deductible in most cases. (Consult your tax advisor, but 99.5% of my customers qualify for the tax deduction.)
The credit scores I quoted are based on my knowledge of getting Home Equity loans and lines of credit approved. I don't have specifics behind auto loan approvals. In fact, I've NEVER done an auto loan because I've always suggested a HELOC as a much better way to finance a car. I would think that we would be more flexible with auto loans, but I just don't have enough information. For HELOC or HE loans, a 620 score is the required minimum for an 80% LTV and a 680 score is required for 100% LTV. As for judgements, etc., I do know that you'd have to send in a letter stating when this item was paid in full for each discrepancy. I've dealt with a few customers with some minor details and it was pretty simple to deal with. As long as it's paid, I don't forsee a major problem, but don't quote me on it. I'm not a loan underwriter, nor do I see people's credit reports (other than my own). As for length of employment, we ask 2 questions: How long in current job, and how long you've been in your profession. So, you could be on your job for 3 months, but been in your profession for 2 years or longer, you'll most likely be okay.
As for length of employment, we ask 2 questions: How long in current job, and how long you've been in your profession. So, you could be on your job for 3 months, but been in your profession for 2 years or longer, you'll most likely be okay. davidkinde ======================== What is looked on most favorably? 6 years in one profession or 6 years in 2 professions? Same months on the job in each case. LB 59
David, IF at all possible, could you or would you kindly give me the name of a Manager for the Well Fargo Bank Credit Card. I would like to send a goodwill letter to him/her for a few lates I have on my CR. You can e-mail the name if you perfer. Thanks much, Sandie PS. Do you think a goodwill letter might work with WF, or will I just be hoping for nothing.
I think 6 years in one profession is better than 6 years in two separate professions. The bank wants to be sure that you are going to stay employed and not have too many interruptions in your income source. As for tiers on auto loans, I think they're about the same as our Home Equity products as well. In fact, they're probably stricter on auto loans than home equity. Home Equity is secured by a residence - and most people would rather sell their first born than be late on a MORTGAGE. Auto loans - although secured - fall close behind the priority of the mortgage. For the contact person with WFB CC Department, I don't have any name to give! I'm sorry. I have plenty of people's names in our Home Equity department, and I have an internal phone number for banker assisted calls, but I have no contact list for our Credit card department. Sorry!
1*Wouldn't having experience in more than one trade occupation or field be better assurance of continued employment than foucising on just one area? 2*This points out a serious problem with information in credit reports even if the info. does happen to be correct.To offen false assumptions are made upon reviweing the information.
