Kubota loan lowers credit score VS PNC Loan raises credit score

[RoyKing]

so have good credit score. 2017 I buy a new Ford finance for 60 months PNC gives me best rate, credit score climbed a few points. 2018 I use the car again to buy a Kubota rtv because I could get the best rate on car loan and had paid PNC off. This time used my credit union for best rate credit didn't change. Now everything is paid off again. So in April I buy a New Kubota tractor and use Kubota 0% deal my credit score drops 24 points. I have no debts and income is pension. Why did it drop?

 

[jeff9366]

I have no debts and income is pension. Why did it drop?

As you are uncertain yourself why your credit score changed your thread title qualifies as calumny.

(cal-um-nee) Maliciously misrepresenting another's words or acts, causing injury to that person's reputation; or falsely charging another with a crime.



It may be financing your $40,000 Kubota tractor (+ implements?) represents more debt than your earlier Ford and RTV purchases. It may be your income decreased due to retirement. Resale on Ford reasonably known, if repossessed. Tractor difficult to repossess and resale difficult to assess. None of these factors relate to Kubota "0%" financing, as your thread title maliciously asserts.

 

[Diggin It]

my credit score drops 24 points. I have no debts and income is pension. Why did it drop?

First off, your post is very hard to read due to lack of punctuation.

Second, 24 points is nothing. Mine varies by that much or more some months, but still averages about the same over the course of a year.

Third, ignore whatshisname.

 

[Hiptfarms]

I have a Discover credit card and every month they report my credit score to me on my statement. It varies month to month for no particular reason that I can ascertain. Sometimes down 20 points one month then up 30 points the next. I try not to obsess on it. It always seemed ridiculous to me that paying off debt can make your credit score go down because your credit history doesnt show any steady payments being made. Never mind the fact that you may outright own your home, land, and whatever else.

 

[RoyKing]

maliciously asserts. My income actually rises every year, Car was the most $, been retired 10+ years. My point is the credit system weighted toward American banks, or statistical do 0% loans default more, is the asset more risk prone. You would think carrying KTAC would help. My score hasn't change that much in many years.

Just thought somebody here might have work for a underwriter and could shed light.

 

[Fallon]

maliciously asserts. My income actually rises every year, Car was the most $, been retired 10+ years. My point is the credit system weighted toward American banks, or statistical do 0% loans default more, is the asset more risk prone. You would think carrying KTAC would help. My score hasn't change that much in many years.

Just thought somebody here might have work for a underwriter and could shed light.

Number of hard queries (which they do before granting any credit)
Age of open credit lines (the shorter the more negative)
Number of open credit lines (they want a few, but none is as bad as to many)
Ratio of credit avalible to used (having lots of credit, but using little us good)

Most of those will negatively impact your credit score & most will be caused by taking out any loan. Kubota 0% or anything else. You probably want to learn what your credit score is based on if you are monitoring it & panicking when it changes.

 

[RoyKing]

Only thing that has changed from first loan to present is time. I'm not panicking just curious, do you think Equifax would say? I feel these reporting agencies should had to give full disclosure of the algorithm they are using. Your banks and brokers have to disclose and wouldn't seem fair that the companies that determine your cost of credit should have to also. I mean beyond the obvious, late fees, missed payments, ratio of payment to income. I may make a request and see what I get for an answer. One thing I heard from guy who helped with first loan was if I paid it off in less than year they would loose their origination fee the banks pays the dealer. I still think it could be because Kubota holds the note and has cut out the middle men, who usually bundle and sell notes. Sort of retaliation for screwing the middle men.

 

[Monster5601]

So in April I buy a New Kubota tractor and use Kubota 0% deal my credit score drops 24 points. I have no debts and income is pension. Why did it drop?

If you are really interested as to why sign up for a Credit Karma account. Credit Karma will tell you what algorithm a reporting agency is using and what criteria the algorithm uses to generate your credit score.

Small number credit score swings are normal, large numbers are usually triggered by a big change. For example, I had a Home Depot credit card I took through one of their promos, it had a 10,000 credit limit. I never used the account again and after about two years, out of the blue my credit scrore drops by 46 points. I checked my Credit Karma account and discovered HD lowered my credit limit by 4,500 dollars. That is all it took, apparently it looked like a signal to other lenders I may be having money troubles.

I've since dumped all my non-bank issued credit cards and upped the credit limit on the two credit cards I use day to day to 20K. Now my normal monthly spending has less than a 3% usage of available credit and my credit score remains stable +- a couple of points.

 

[Diggin It]

I've since dumped all my non-bank issued credit cards and upped the credit limit on the two credit cards I use day to day to 20K. Now my normal monthly spending has less than a 3% usage of available credit and my credit score remains stable +- a couple of points.

That can ding you too. 'Too much available credit' or some such silliness. They'll get you one way or another. Key is to not obsess over the rating month to month. I've added the tractor loan and a store credit card in the last 6-8 months. Number dropped between 40 and 120 points for the month following each new account opening but swung back up once payments began to show up on time. My 800+ dropped to about 680 or so the first month after I got the tractor loan, but bounced back to 800 within two months.

I need tires on one car and am trying to decide whether or not to open a tire store card where I can pay over 12 months with no interest. I could put them on one of my other cards and earn points/rewards, but that would mean paying $500 or so the next month since my rewards cards are paid off in full each month to keep from paying interest. I'm not sure I want to open a third account in less than a year though.

 

[oosik]

Call the credit bureau and ask why.

 

[JOHNTHOMAS]

As you are uncertain yourself why your credit score changed your thread title qualifies as calumny.

(cal-um-nee) Maliciously misrepresenting another's words or acts, causing injury to that person's reputation; or falsely charging another with a crime.



It may be financing your $40,000 Kubota tractor (+ implements?) represents more debt than your earlier Ford and RTV purchases. It may be your income decreased due to retirement. Resale on Ford reasonably known, if repossessed. Tractor difficult to repossess and resale difficult to assess. None of these factors relate to Kubota "0%" financing, as your thread title maliciously asserts.

I agree that the heading is very misleading and detrimental to Kubota Credit Corp with no validity. Lots of people scan forums and just read headings and not the posts which makes your heading/post topic very misleading. Sure you had no malicious intent but you may want to consider your post topic standing alone the next time.:2cents:
Oops, I meant to not add commas and periods to my response because one troll from other equip owners likes to troll Kubota site and leave snide remarks due to his short comings or trying to cut other peoples participation on an open Kubota Owners forum. :cool2:

 

[Gem99ultra]

Its easy to get concerned when your credit score suddenly drops for no apparent reason. I recently saw mine take an 80 point drop in one month. Yeah, I was concerned. The reason seemed to be that I had an item large open idem on my credit card that went over their 'recalculate' date. Anything over 2% of my available credit line was a red alert to them. The open balance was paid well within their 30 days, but after their recalculate date. Credit score jumped right back up to the previous level.

I've also had my credit score drop due to not using my credit line. I sure don't understand their logic, but then, its their game - not mine. Sadly, it does effect our pocket book. My thinking is that if they decide to jack around with your credit score, i.e. your money, they should be required to notify you and to give you an opportunity to respond if appropriate.

 

[RoyKing]

I'm going to ask, but I doubt I'll get an answer. I'll report and I'll check the other two agencies. You can get annual report for free from each yearly.

 

[RoyKing]

So I ran my free credit report and found out why my score dropped. Kubota did a HARD ENQUIRE versus the SOFT ENQUIRE that previous banks used for loans. From reading the difference between soft and hard is the Hard publishes all the data about the loan. Whereas PNC used soft and did not publish.

So what can you read into this... Since the previous two loans were auto and I guess easier to retrieve it lowers their risk. Since I haven't bought any property I don't what kind of enquire that is.

My summary for last 27 years was Paid, Closed/Never late.

So my statement about Kubota credit, can't really answer the question. Why the hard VS soft, did auto VS equipment make difference. Haven't borrowed enough to know.

Also I have feeling that other stuff is used and gov't doesn't make them tell you unless you are turned down. Ford credit turned me down and said because I paid loans off early, or their words "didn't follow condition of loan ".

PNC stated they were just fine with early payoff.

Now you have more info, but it still is hazy to me.

 

[fried1765]

First off, your post is very hard to read due to lack of punctuation.

Second, 24 points is nothing. Mine varies by that much or more some months, but still averages about the same over the course of a year.

Third, ignore whatshisname.

Love it !!!

 

[RoyKing]

Number of hard queries (which they do before granting any credit)
Age of open credit lines (the shorter the more negative)
Number of open credit lines (they want a few, but none is as bad as to many)
Ratio of credit avalible to used (having lots of credit, but using little us good)

Most of those will negatively impact your credit score & most will be caused by taking out any loan. Kubota 0% or anything else. You probably want to learn what your credit score is based on if you are monitoring it & panicking when it changes.

Fallon, you seemed to be most informed of all of us. Can you explain why two car loans only generated soft enquires, while the Kubota produced a hard?

I'm not panicking, but when I see something I don't understand I like to find out the whys.

 

[Fallon]

Fallon, you seemed to be most informed of all of us. Can you explain why two car loans only generated soft enquires, while the Kubota produced a hard?

I'm not panicking, but when I see something I don't understand I like to find out the whys.

Soft querries are generated whenever anybody pulls your credit score. They dont count towards your credit score.

Hard querries are generated whenever your score is pulled for the purposes of granting credit. They do count negatively towards your credit score, but their impact doesnt last to long. I believe it's to make it harder to quickly get multiple lines of credit quickly. Even signing up for a cell phone plan will often generate a hard query.

No clue why those car loans didnt. Unless they just dropped off because they only look for them for a short duration. After a few months either you have that line of credit, or you dont, so the hard query is moot & the artifacts show up as an existing loan or what not.

 

[Ford850]

If you are a current PNC customer, they could use your history with them to reduce the viewed risk and only require a soft query. Plus you were paying interest on their loan, compared to a higher risk 0% interest loan from Kubota.

 

[atsah]

Income to debt ratio changed when you bought the tractor. 24 points is nothing, it will go back up soon..

 

[KTAC]

I represent KCC (Director of Operations) so you are getting information straight from the horses mouth. Almost all finance companies use a hard inquiry if you don't already have an existing account with them. For example, if you have an account with Bank of America and apply for an auto loan through them, they will probably only do a soft inquiry. If you want to use Toyota Motor Credit, you will probably get a hard inquiry. There is zero impact on your credit score by getting a 0% loan versus a rate at prime or some other %. Hopefully this helps...

Brian Carter