topic Re: Credit score in Community Chat

Credit score

dex — Thu, 31 Aug 2017 01:06:05 GMT

How does this work.My son has a great credit rating but when he went to purchase a new vehicle he was told that if his credit rating was lower he could get a better deal...huh?anyone have an explanation that makes sense for that?

Re: Credit score

trenet — Thu, 31 Aug 2017 01:10:47 GMT

Bewildering. I hope someone can explain it.

Re: Credit score

Bri36 — Thu, 31 Aug 2017 01:11:48 GMT

Did he ask the person who told him what it meant?

Re: Credit score

Carmie — Thu, 31 Aug 2017 01:12:44 GMT

Who told him this? The dealer?

most people can get better financing rates if they go to their bank or credit union and get approval for a loan first, then go vehicle hunting.

the dealers can secure loans for people with bad credit who are considered high risk. The dealers make money by securing a loan for their clients and sometimes take a risk to sell a car. They tend to make more money than they lose in the long run.

Re: Credit score

dex — Thu, 31 Aug 2017 01:13:23 GMT

They said you had to have a credit score below620 to get the advertised deal

Re: Credit score

dex — Thu, 31 Aug 2017 01:15:41 GMT

@Carmiethis was got a no interest 5 year loan.He owns his vehicle and boat.He also has a home and no other debts besides the mortgage.

Re: Credit score

dex — Thu, 31 Aug 2017 01:23:25 GMT

The dealerships in Oklahoma are advertising these vehicles with no interest loans but who knew that they weren't for people with a good credit score.They said nothing about that in the ads.

Re: Credit score

Carmie — Thu, 31 Aug 2017 01:30:30 GMT

I wonder if they are selling the vehicles at a higher price. Often that is the case with no interest deals.

maybe he can negotiate a lower price and get a good financing on his own. There is no way anyone will put a deal out there where they lose money... no way.

Re: Credit score

GCR18 — Thu, 31 Aug 2017 01:32:04 GMT

That's ridiculous. We only want to give people with lower credit scores the best financing. I'd tell them they just lost a sale because of this.

Re: Credit score

jackthebear — Thu, 31 Aug 2017 01:33:34 GMT

I think he needs to go to a different dealer

Re: Credit score

Kachina624 — Thu, 31 Aug 2017 01:36:09 GMT

Usually the best deals, like no interest loans, are reserved for customers with the highest credit scores.

Re: Credit score

dex — Thu, 31 Aug 2017 01:37:47 GMT

I just don't get why they wouldn't give him the loan...a deal is a deal and I think car dealers sales are slightly down.We are all baffled by this.My son said he will continue to shop but the price and loan deal were enticing for those who can qualify.

Re: Credit score

dex — Thu, 31 Aug 2017 01:39:38 GMT

@Kachina624 Yes we were sure he could get the loan as he has an excellent credit score but I guess in this case that is a detriment.

Re: Credit score

LonestarBabs — Thu, 31 Aug 2017 01:55:39 GMT

Right now several manufacturers have a "low credit score" discount. I've seen it itemized along with loyalty cash, dealer discount, military discount, etc. It seems counterintuitive, doesn't it? People with stellar credit scores should go elsewhere if a dealer balks at making a deal. I remember a few years ago I went into a dealership and my credit score was so high the finance guy said "you can have whatever you want!" He actually gasped. They treated me well as a result.

Re: Credit score

Carmie — Thu, 31 Aug 2017 02:06:00 GMT

Last year my DH was looking for a small Jeep SUV, we found what we wanted at a dealer and negotiated a price. The dealer wanted to talk financing, but we were not interested and told him so,

The next day, we came back and signed all of the papers and gave them a cashiers check for the vehicle,

The following month, I got a " ping" that something had changed in my credit report. When I checked, I noticed that the dealer had tried to secure financing at two different places for that vehicle. My DH's credit report showed the same thing.

We both lost a few points because of that dealers search.

you can bet in the future that we will immediately tell any car dealer that under no certain terms are they allowed to run a credit report of do a search for a loan for us.

if we need financing, we will secure it ourselves. Dealers want you to finance though them. They get kickbacks from the Banks when you do.

Re: Credit score

Moonchilde — Thu, 31 Aug 2017 02:14:54 GMT

@dex wrote:
I just don't get why they wouldn't give him the loan...a deal is a deal and I think car dealers sales are slightly down.We are all baffled by this.My son said he will continue to shop but the price and loan deal were enticing for those who can qualify.

Car dealerships, and the individual salespeople, make large commissions when a customer uses their in-house finance company. They always have a vested interest in getting you to use who they want you to use. They'll tell you/claim a lot of things that may or may not be true. You can bet they're making good money in commission on that kind of "deal."

Re: Credit score

Mistreatedbycs — Thu, 31 Aug 2017 02:28:52 GMT

@dex What specifically was the "advertised deal"

Ford has 0% interest for 72 months, what mfg was he looking at?

Re: Credit score

dex — Thu, 31 Aug 2017 02:53:06 GMT

@Mistreatedbycs He wants a ram truck

Re: Credit score

sunshine45 — Thu, 31 Aug 2017 03:34:55 GMT

i went looking at rates on chryslercapital.com.

you have to put in your zipcode to find deals on ram trucks.

i saw anywhere from 0% interest up to 2.9% interest.....some also with additional cash back.

Re: Credit score

Mistreatedbycs — Thu, 31 Aug 2017 03:35:14 GMT

@dex You can look on the dodge ram truck website for your City and see that they have 0% interest for 75 months I believe.

On one of the dealer websites, they are telling me don't worry about the financing options if you have bad credit, we can help, so if he has

great credit, he's eligible for the 0% interest.

I have never heard of anyone with a low credit rating getting a better deal than someone with a high credit score so that's why I am confused reading this.

When I walked into the Toyota dealership and they ran my credit with an almost perfect score, there wasn't any hesitation in offering me anything.