Q&A, Holes that need filled to Enlighten/Create a Dangerous Consumer!

[FICOfreak]

The Credit Questions Gauntlet

Part 1

My collection of questions from my months of research; ambiguous and unspecified terms; I thought it would make sense to leave this in a dedicated thread here and see if the questions can’t all be answered over time one by one J

• Expedia CR
  • I can still buy a report for/from Expedia, just not a FICO any longer right?
    
  • For the most accurate up-to-date report, do CR’s vary like FICO’s? Should I buy from the CRA direct, or go through MyFico?

  [*]Transunioncs.com

  • This TU website, with the infamous “CS” added to the end is supposedly the same as a true FICO Consumer (not a FAKO) score offered by MyFico – is this correct or is there an advantage over one or the other?

  [*]Under 30-Day Delinquency not reported on actual CR (or) Score?

  • I have heard and seen that CR’s only create and report delinquencies as 30/60/90 days. This leads me to believe that payments made 1-29 days “late” are only penalized through the Credit Card company and consumer, through late fees/interest hikes/CL decrease etc; correct?
    
  • I technically made a late payment on my Chase credit card because of my wedding and honeymoon, but since it was only 2 weeks overdue it was never reported on any version of my CR; which leads me to believe the only delinquency that matters for the sake of your CR and subsequently your FICO are the delinquencies that cause the 30-day+ box to be shaded in your Credit Report..

  [*]Maxed-Out/Over Limit

  • How does previous Maxed-Out and/or Over Limit CC affect your FICO since 1-7/9% Utilization is Optimal?
    
  • Do the negative Debt-to-Credit (Utilization) ramifications (FICO Dings) disappear/rebound after the card(s) are paid in full and reported as such?
    
  • If the negative results of Maxed-Out TL’s do not disappear when PIF, how long does the tarnished FICO score last in reactions to Maximum Utilization?
    
  • Can previous (2+ years ago) Max Credit Lines be viewed by Lenders (auto/home/other CC’s) that are making decisions on offering you an approval for New Credit if my balance when applying for the loan is $0.00 on all Cards?
    
  • I can still see the “High Balance” on my own personal CR’s, but I am not sure if this is information Lender’s/CC’s are concerned with/privy to when granting new Loans/Credit?

[FICOfreak]

Part 2

• Opt Out
  • How/Where can I truly Opt-Out of ALL junk mail, solicitations, Pre-Approval offers, and false/misleading Credit Offers that are not legitimately already approved that come in the mail?

  [*]Car-Loan History Challenged

  • Since I have never personally taken out/applied for an Auto-Loan, and I know the specialized Auto-FICO (FAIO, Enhanced Version) deeply considers past Auto Loan history when making an approval choice, will that hurt my chances in gaining the Loan in the future when I apply?
    
  • Is there a way around this problem by seeking out Lender’s/Banks/CU’s that are able to dictate/choose which FICO score they view, and only do business with those that will look at regular FICO Beacon and will understand I’ve simply always paid cash for my cars but my credit score speaks for itself?

  [*]FAIO (Fico Auto Industry Option)

  • Do the FAIO approval Tiers vary from dealer to dealer, or car corporation-to-corporation, or bank-to-bank?
    
  • Am I legally entitled see/receive a copy of any/all CR’s printed for me with my authorization at a Bank or Lender?

i. If not legally entitled, I know if I am not approved I am entitled to a Free CR, but what if I am approved and I still want to receive copies of my report(s) the Auto-Dealer/CC company etc used, but they are hesitant to give me copies of them?

• Loan-Rejection
  • If I am rejected for a loan (of any kind? Auto/CC/Mortgage?) I know that entitles me to the Free Report as mentioned above, but… is that report Free from ALL 3 CRA’s, or only the 1-2 CRA’s that the Lender specifically pulled and cited?
    
  • Where do I go in order to receive my Free report(s) if turned down for a loan? (AnnualCreditReport.com, or each CRA individually?)
    
  • What website link do I visit for the Free report, and is this report completely accurate up to date?
    
  • Do I need a special code to receive my Free CR online after Loan Rejection?

  [*]Car-Loan/Mortgage Buffer & Inquiry Grouping

  • Are Car-Loan/Mortgage Lenders required by Law to report specifically as that type of Lender to ensure the FICO 30-day buffer for reporting and 14-day buffer to be grouped as a single Inquiry?
    
  • If not required by Law, is this grouping/buffering something that happens once the 3 CRA’s receive the notice of your Inquiries and handle from their end?
    
  • If something goes wrong, and I am shopping for example the best Car-Loan, and I apply at 15 different places to compare, but the FICO Inq rules are not honored/applied, is this something I can bring up and explain on an individual basis to Lenders in the future if I apply for a Loan/CC within the next 2 years before “all” of the Inq’s fall off?

  [*]Proof of Income

  • What documents are considered acceptable for Proof of Income when applying for a car loan?
    
  • If an applicant only makes $20,000 a year, but has a 730+ FICO (Beacon) does that affect the amount they will be approved for, or is a car loan heavily based strictly off of income level?
    
  • Auto-Down Payment
    
  • I know this seems off base, but CIC focuses a lot on Auto-Loan and FAIO etc, so I wanted to ask what the Optimal Down Payment is for purchasing a car? I have read anywhere from 10-35%. While I think 10% is too low to make any real difference in payment, interest rate, haggling with the salesman to lower price, or to ensure a loan approval, I also believe 35% is far too high. Is there a consensus out there for what is the best amount in order to secure the best interest rate, auto-price, and ensure Loan Approval? (I am including Tax/ Title/Tag/Registration in the Down Payment)

[FICOfreak]

Part 3

• Disputes
  • As I’ve mentioned before, the only glaring eye on my credit report over the years is an apartment complex that did not honor my Early-Lease Termination due to employment opportunities elsewhere which involved an eventual collection being placed on my CRA… what is the best way to begin my dispute and resolution process?
    
  • Is an Apartment Complex seen as a “Creditor” as in, the Original Creditor?
    
  • In what order should I use Debt Verification, CRA Accuracy Disputes, or 623 Original Creditor Dispute? (I am trying to avoid direct communication with the Apartment Complex; they are the most severely incompetent and disconcerted group of people I have ever encountered.)

  [*]FTC Opinion Letter

  • The FTC says No Debt can be reported until Debt has been verified; does this refer to once the consumer has begun the Debt Validation or Dispute process they cannot report it on your CRA until it has been finalized?
    
  • Does this hold true for Debt Validation, Disputes with Original Creditor, Disputes with Collection Agency/Law Firm, or all?

  [*]Debt Collection License

  • Following the advice of the forum, if I check to see if a Collection Agency/Law Firm is license to collect in a certain state, but they are trying to collect a debt from Nevada for example but I live on the East Coast now; what licensed state am I trying to find out about? Nevada or my home state?

  [*]Personal Information Sharing

  • How do companies (junk mail, credit cards, car-lots, etc) receive and use my personal information for marketing materials if I am unlisted in the phone book, do not have any social networking pages (Facebook etc), do not have a home phone, and only rent without having my name on the mortgage?

  [*]CRA Inquiry Removal

  • If I am able to get Inquires erased from one CRA, if that Identical Inq exists on other CRA’s am I able to supply them with any info in order to have it removed from their records also, or is it a one-by-one process by CRA?
    
  • Is it possible to contact the original credit to have an Inq removed, or once it is placed I have to deal directly with CRA?

6+ Inquiry = BKO?

• According to the listed “research” 6 or more Inq’s at one time on your CR is seen as being 8x more likely to declare BKO; does this mean that having 5 or less Inq’s will boost your score or improve chances of Loan Approval across the board?
  
• If a CR has 0 Inq’s, 730+ FICO, ZERO Debt, NO late fees EVER, and at least 5 years of Multiple Trade-Line history… would it be guaranteed to receive an Auto-Loan (if they have never had a car-loan before) or certain CC APR/Limit?
  
• I am curious if the Lenders are more worried about income, or a perfect credit history and file as listed above, and if there is any correlated amount of credit or Auto-Loan they would be willing (historically) to lend to someone in that situation?

THANK YOU SO MUCH ANYONE THAT HAS ANY INPUT!!!!

[jetscarbie]

If I am rejected for a loan (of any kind? Auto/CC/Mortgage?)

It will tell you on the letter what agencies they used. You can make a copy and send to all they list. Mail it in with a simple letter requesting it. (also remember that if you send them the letter...they then have proof, so it will be much harder to dispute that inq.

What documents are considered acceptable for Proof of Income when applying for a car loan?

I have never had to show proof...but I would think a few paycheck stubs or tax records would work.

Opt Out

https://www.optoutprescreen.com/?rf=t

[FICOfreak]

Thanks a lot Jet! I know there are a lot of questions there... it is the list I've compiled since last year when I joined the forum, and I was going to put them all to rest, haha!

One question that came to my mind about Credit Line Increases... this has always been something I'm indifferent about because I never go over a 9% utilization as most people suggest for FICO support... but if I contact all my CC companies for a CLI, I always thought it would be a credit pull - but, after joining the forum I am beginning to think it would be a soft pull since I am currently a customer of those credit cards... is this true?

I wonder if I've always been wrong about CLI and Inq on my CRA?

[jetscarbie]

for a CLI, I always thought it would be a credit pull

I'm not quite sure but I have had mine do both(soft and hard) when asking for a CLI. I just think it depends on the company.

Personal Information Sharing

How do companies (junk mail, credit cards, car-lots, etc) receive and use my personal information for marketing materials if I am unlisted in the phone book, do not have any social networking pages (Facebook etc), do not have a home phone, and only rent without having my name on the mortgage?

From a varity of different ways. Just cleaning up your credit report can trigger alerts to companies. CRA's are a furnisher of your personal info. But also applying for credit triggers some other ones.

If I am able to get Inquires erased from one CRA, if that Identical Inq exists on other CRA’s am I able to supply them with any info in order to have it removed from their records also, or is it a one-by-one process by CRA?

Is it possible to contact the original credit to have an Inq removed, or once it is placed I have to deal directly with CRA?

one-by-one process. They don't care what the other has/has not listed.

Yes, you can send the company that did the inq. and ask them to remove it. Some have had good luck with that.

Should I buy from the CRA direct, or go through MyFico?

either is probably fine. I personally buy mine directly from the CRA (each separately)

But if you want to know your score....myfico is the only real one.