Recourse? Dealership runs my credit without permission!

Funny point is the increase on debt to income by taking on a new vehicle loan will have a bigger impact than the hard inquiry.

 

Lol so true

 

Debt to income ratio isn't in any of the FICO scoring models.

Your DTI ratio is important for sure, and is used by lenders, but it isn't in your score.

 

FICO isn't everything. Qualifying for a mortgage goes beyond your credit score. A construction loan is just a modified mortgage with even more stipulations.

 

Agree, just pointing out that DTI isn't part of any FICO models, which is what this thread is discussing.
Actually, if his payments are the same in the new truck, obviously his DTI wouldn't change and there would little or no impact for a lender to even consider.

 

It would lower the average age of accounts though.

 

Pulling a mortgage/construction loan I doubt they will use a FICO score. Even if they did having a fresh loan, has the balance of that “account” at or close to what the Max limit was issued. Pretty sure that’s going to sing the score several points or more. Anytime I opened a fresh auto loan my score has always dropped double digit numbers for a few months then rebounded a bit later.

 

I'd blast them on every social media platform, public image is HUGE to a dealer, and contact the BBB. BE A PAIN IN THEIR ASS!

 

True, but FICO models will still include the old (2017 loan) to calculate the AAoA.

One loan from 2017
Second loan from 2019

AAoA splits the difference and spits out....1 year.

Most likely any impact would be moot.

 

Qualifying for a mortgage is way easier than getting a construction loan. Usually pricing isn’t based on your personal credit score but the risk associated with the construction and how easily the asset can be converted to cash for the bank if you default. Usually a construction loan is to your business not you individually

 

Virtually all mortgage lenders pull FICO scores. I think the exception might be a VA guaranteed loan. Yes, getting new credit will (generally, not always) result in a temporary drop of a few points. Paying off a loan (especially a mortgage) will sometimes have the same effect. I know, makes zero sense.

I put a $70k auto loan into the Capital One credit simulator and my FICO dropped 2 points. Have no idea how accurate the thing is.

 

You could do a few things:
1) Dispute directly with the 3 credit bureaus. You can do that online pretty easily.
2) Write a letter explaining what happened, send it to dealership GM and owner, and send a copy to Toyota corporate. Certified if you want. Name names. Explain that the dealership broke the law. Demand a correction be sent to the credit bureaus.
3) Write a letter to the consumer protection division of the state attorney general’s office, and if you feel like it, the federal equivalent.
4) post factual negative online reviews. Google, Yelp, cars.com, whatever.
5) Call the dealership owner and request to meet and discuss in person, so he or she can personally apologize and figure out how to make it right.

Sure it’s just a few points maybe but it’s the difference between two ratings categories for some other poor shmuck down the road, which can be thousands of dollars in interest on a loan. I’m a pretty easy going guy, but fucking with someone’s credit score gives you every right to make life unpleasant for the dealership.

 

What else could a credit monitoring service have done other than provide an alert? It is a monitoring service after all. The only preventive act, if you will, is a credit freeze. Unless I’m ignorant about some new process in which case I’m open to a hip pocket class.

 

They definitely use fico scores for construction loans.

Both.. Based on scores and risk.

And a construction loan comes to you personally If you are an owner contractor and doing the work yourself.

The VA home loan, which i qualify for, still uses fico scores. You still go through a bank. You just have a "guarantee" from the VA in the case of a default.

Even for people who qualify. The VA home loan guarantee is not always better than FHA or direct mortgage. You still need a minimum credit score and there are still lots of stipulations with VA.




The construction loan is not for a home. My home and 2 acres of land is paid in full. The loan is for a 1400+ square foot detached garage. I don't want to use my home and land as collateral making the credit score even more important.



But it doesn't matter at this point. My credit was only pulled once by the dealership. They are not shotgunning it out or shopping it to banks. I'm approved for financing at 2.9 percent through Toyota directly. Which they say is currently the best they can give even if a credit score is 850. Not sure how true that is but I'm happy with 2.9.


The thing is, for the construction loan over 720 puts you in the top bracket and gets you the best rate possible... And because I'm right on the line it made this a big deal. Which is why i didn't want my credit pulled. I would of waited until everything was finalized with the construction loan before proceding with the truck loan.

I already had one approval for the construction loan at "their" best rate but was advised to get at least 2 more offers from other banks... So worse case scenario I'll Just take my first offer which isn't bad.

 

skipped 6 pages of posts because this seems like everyone is missing the big picture. If the OP is playing the "keep my payment the same" game with the dealer he should also ask them to kick in a tube of KY jelly because he's already getting screwed. There is so much wrong with that I don't even know where to start.

Seems like the bottom line is the dealer is unethical and the OP should never do business with them again.

Oh and here's an inside note on the BBB. It is complete and utter bullshit. Businesses pay to belong so they can say they have a 100% rating, but that rating don't mean a thing. Has anybody honestly called the BBB before making a purchase? And if the business doesn't belong the BBB can't do anything. (lessons learned from owning a business)

 

Great post, particularly 2nd para.

Agree that BBB is useless.

I still think, outside of walking away, actions should be taken to remove the hard pull (because it’s wrong) and slap back at the dealership hard enough to communicate that operating unethically, even out of ignorance, has a consequence.

 

I'm not so ignorant to think they will normally take an older used truck and give you a brand new truck for less money.

I've already done the "loyalty customer trade up program" once. Went from a 2016 2wd tacoma to a new 2017 4wd tacoma back in 2017. Payments went up 40 bucks a month and they tacked on another year.

I've bought plenty of cars in my life. No business will stay in business for long by losing money and trading old for new.

I wasn't in the market for a new vehicle either. Love my truck. They contacted me. I explained i knew they couldn't keep my payments the same and told them i didn't need a new truck but if they wanted to give Me a ballpark figure without pulling my credit go ahead...




In the end it's working out for me. So this thread is now finished and can be closed, locked, deleted or whatever. I just don't know how to do that... But I'm basically saying the same thing over and over again now LOL.

 

Do some research and see if this is a common practice of that dealership. Dispute the inquiry with the credit bureau. The offer of getting your 2017 for a 2019 with the same payment is a win-win for the dealer. I'd do business elsewhere.