QUESTION on CREDIT SCORE/REPORT?

Question

ok so heres the deal. about 2 months ago my credit score was a 690 (experian) and there is not one thing on my credit report derogatory, past due, or negative. everything on my credit report is GREEN (which means everything is current and OK), i have never been in collections, or past due. I had bought a car back in september and my credit score suddenly shot down from 690 to a 580. The dealership sent my application to 10 different banks that then ran my credit 10 times. I know this is a factor, but still...my credit score should not have went all the way down to a 580. What can i do about this? i need to know because me and my fiance went to purchase a motorcycle and they declined (not denied for any specific reason) the application. Thats how i found out that my credit score was a 580. What can i do about this situation, and can i take legal action against the dealership? What could have been the reason that my credit score shot down dramatically?

My debt to income ratio is at 30% which is really good, which is also why i dont understand the reason for the 100 POINT DROP. i pulled my credit report also. my credit cards are not all maxed out, i actually have credit cards that have no balances at all too. Thanks everyone for your answers.

Also in September of this year, i traded in my 2006 altima for a 2007 chrysler which made my payments go up about $100.00. maybe that could have been it too??

Answer 1

It was not the inquiries that did it, all inquiries made for a car loan in a 14-day period are lumped together and only count as one, they all show but your score only gets dinged once.

Most likely it's due to the additional debt you took on.

After you make 6-payments as agreed your score should return to normal.

Answer 2

It could just be the added debt that has lowered your credit score. Those inquiries would not have effected it that much. But, if you have several credit cards that are near being maxed out, plus a new car loan that has nothing paid off on it yet, your debt ratio may just be too high. The best way to bring it down is to just keep paying all your bills on time until you bring some of the balances down a bit and it should start to go back up.

Answer 3

First, get a copy of your current credit report. You are entitled to it if you have been refused credit.

Check it carefully, identity fraud is a big issue now.

If you find inconsistencies, appeal them to the reporting agencies.

Your score should not have dropped that far just by buying a car. And if the inquiries were all for the same loan, you could just tell the m/c dealer that. Show him the credit report and say "look they are all within XX weeks of us buying this car."

You may have to sign a waiver stating that the credit inquiries were for the purchase of the car, and seeking the lowest interest rate, or something similar.

Good luck,

Answer 4

Heres how your credit score is determined:
35% payment history. Most recent the most important
30% outstanding debts- credit cards, loans etc and how much of a % it is of your income. This included available balance on credit cards
15% length of time you had credit. The longer the better
10% the number of recent inquiries on your report- this is where the car dealership hurt your score
10% the type of credit that you have - credit cards, loans etc.

Answer 5

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