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Does it cost creditors???


tropicaljo
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Does it cost creditors to file reports to the CRA's? The reason I'm asking is because we've been dealing with the same car dealer for almost 5 years now. They were the only dealer in the area who would work with us after having filed bankruptcy 6 years, 8 months ago. We've paid off 3 vehicles (1 for me, 2 for my husband) with them and are working on number 4, and have recieved I don't know how many letters stating that we are preferred customers cause we've never been late in all the time we've dealt with them.

When I began our credit repair struggles 9 months ago, I noticed that they weren't on our credit reports anywhere, so I called them up and asked why, explaining to them that we were trying to clean up our credit reports. Was told that they only report things like repos. When we had to purchase the most recent vehicle we asked if, since this was vehicle #4 and we're such preferred customers, couldn't they help us out and make positive reports on our history with them. That would give us almost 5 years of positve credit history!

The rep we've worked with for the past 3 years said she'd get right on it. Well, on our last updated credit reports, there was a hard pull on DH's report from this creditor from when we made the last contract (6/2003), but no postive TL, past or present. I called them up and asked why they did that cause a hard pull with no positive TL makes it looks like we were denied, hurts his score, yada, yada..., "is this how you treat preferred customers?". Was told "Well, you signed a piece of paper saying we could pull your credit reports." I said "Yes, but you guys have never pulled reports before cause it's not reflected on any of our credit reports that you've ever done a hard pull, so why now? Our usual rep transferred me to guy who told me "We'll be glad to give you a letter of credit, but we only report the dead beats who don't make their payments." I told him I already had a letter of credit from his company and the bank looked at it like it was toilet paper!

Then...and here's the real kicker...later that evening, another rep of the car lot calls and asks DH for a copy of the key to the truck we got in June "for their files"! How freaking insulting.

Anyway, the question was... Does it cost creditors to make reports (good or bad) to the CRA's? Reason being, if the cost per report/update wasn't real big, we'd pay it to get this car lot to make a full report on our history with them. And thanks for a place to vent my frustrations.

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You're caught in a sub-prime, note-lot revolving door. Collect your "preferred customer" letters, etc. and next time you need a new car, find a larger dealer that will report to the bureaus, even if they are carrying the paper and not a finance company.

Meanwhile, get a gas card (Chevron comes to mind), and work your way up to cards with specialty retailers (Radio Shack, Limited), then to full-line dept. stores, then to Visa/MC/Discover, etc.

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What Pale said. The CRA's have set up sort of a shell game where it's very difficult to succeed. They'll let places like this car lot place bad tradelines on your report one at a time, but good tradelines, TU requires places to submit them in batches of 100, and I'm not sure what EQ/EX require on it, but it's a multiple set.

So basically, if a company doesn't get enough business to acquire enough good tradelines to submit to a CRA, they can't do it.

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Sorry it's taken so long for me to respond. I want to thank you guys for your responses. This is really frustrating cause since the bk, DH and I have really busted our butts to pay our bills on time. Unfortunately our home and property is owner financed and the car lot doesn't report positive stuff and the utilities don't report good stuff. Didn't learn until DH totaled his truck this summer and needed a new one that preferred customer letters and letters of credit are worthless. DH has NO credit score whatsoever, and last I checked, my only score was with EX at 496. The only thing that matters to any creditor is what Fair Isaac or FICO says, and in mho, Fair Isaac and FICO don't know crap... Oh well, with the info I'm getting here I'm learning how to get out of this damn hole we've fallen into! I just wish I'd found this place about 4 years ago!!!

THANKS EVERYONE!!!

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Didn't learn until DH totaled his truck this summer and needed a new one that preferred customer letters and letters of credit are worthless.
Somewhere near you there's a big dealership with a "second chance" lot/finance dept. that specializes in no credit/bad credit situations (because they're a big dealership that's hungry for even more market share), and they will report. It cannot be that all the big dealerships around you are leaving that money on the table. Your job is to find that dealership, by looking in the newspaper from the largest nearby city ... it'll be there, 99.8% guaranteed.
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Thanks for the advice flacorps. We didn't really take the time to look around like we should have, and were pretty discouraged after the first big car lot we hit. It was one of the biggest in the area, and they were pretty snitty about our credit status, and we ended up with two hard pulls on each of our credit reports. Oh, well, live and learn...next time we're car shoppin' we'll sure use your advice and do a better job shopping around! :lol:

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