Kubota loan lowers credit score VS PNC Loan raises credit score

[mikester]

Your credit score is an arbitrary number and a different, proprietary, non-compatible yard stick used by various competing agencies. At the end of the day your credit score is irrelevant to everyone except to those agencies loaning you money. In other words who cares.

Businesses want your money and will do anything to loan you money in order to extract the maximum amount from your pockets at all times.

Instead of Credit Karma, just scan and upload your personal info here on this site. Include all your bank accounts, pay stubs, deed to your property, drivers license, insurance, etc. I will give you a credit score and I promise I won't sell your information. Trust me, this is a better offer then you installing an "App" from a pseudo credit agency. It will be just as secure, I promise.

Dave

 

[Tr3kker]

My credit score took an initial dip after my tractor purchase, then came back up. I don't think the hard inquiry mattered much.

 

[fried1765]

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.

Response seems unnecessarily nasty!

 

[aczlan]

Response seems unnecessarily nasty!

It is blunt and factually correct, interpretation beyond that is left to the reader.

Aaron Z

 

[notaz3]

Your I love credit score can change any time there is something reported to the credit agency.

Payment history 40%
Credit usage (use vs availability) 31%
Account Mix 11%
Credit Age 21%
Inquires 5%

Having added an inquiry, a new credit (age), changing account mix, and adding to debt all add up to lower credit score.
If you use a current credit card and keep the balance less than 30% of available credit the change to score is not the same as opening a new card / account.

 

[Torvy]

Prior to teaching, I spent over 25 years of my professional life working for two of the largest bank/lending organizations in the US. I agree with what the KCC guy said. Any pull granting credit is going to be a hard pull. There are other factors that can play into not as well, though. If you 'shop' credit for more than about 2 weeks prior to taking out a loan, your score will drop a little. There is 0% chance that all else being equal, a different lender would change your score in either direction.

Credit scores are also not just for loans. Your insurance rates will be lower if you have good credit, too. People with good credit are less of a risk.

The reason having too much available credit hurts your score a little is that there is a risk that after making you a loan (car, tractor, house, etc.) that you may go deeper into debt using that credit. This all comes from years of data analysis and indicators of shifts in credit worthiness.

Fyi, all lenders do not use FICO scores the same way. One of the banks I worked for used it in combination with their own proprietary model. For them, trading in a vehicle was better than cash down (again, Ceteris peribus). People who didn't trade would often still have their old car, so if money was short, they may skip payments or default. Contrary to many opinions, modern banks have no interest in repo. They will get much more by working out repayment terms.

I spent a lot of my time reading credit and investigating shady practices by dealerships. If anyone has any questions, I am happy to share my experience.

 

[MHarryE]

I’m never sure of my credit score or what it means. I wanted to refi my house in order to build a machine shed. I could have paid cash from my IRA accounts (I was 72 at the time) but Wells Fargo, who had my current home loan turned me down despite my having 4 times the loan amount invested in their bank. I asked to reconsider - they said no. I went next door to US Bank who was about to turn me down when they noticed how much in assets was coming along with my business. Then I went back to Wells Fargo who said if only we had known - can we get the money you had invested back - it was corporate who turned you down and we didn’t know about it until you asked to transfer a sizable IRA amount next door. So last Saturday we replace our leased car with a new lease. They showed our credit scores, all they take into account, and I was miffed my wife’s was 15 points higher than mine. In 2013 I bought the largest Kubota farm tractor at the time. A day before we were to sign the papers, I got a letter from Kubota saying my loan was denied. I went to the dealer and explained and he was floored. He was on the phone for a bit, then asked me if I could share a quarterly investment statement showing I had money to pay for the tractor. I sat at their computer, downloaded the statement from one institution, and we signed the paperwork no problem. So the credit score only goes so far. If you have money saved, some places will accept it if they seriously want the deal.

 

[Torvy]

I'm not going to name names, but at least one of those you mentioned has a bad reputation in the business for shady stuff. Some will find excuses to avoid loans to older people as they fear potential risk due to end of life issues...so they will make excuses. Some are just poorly managed. Any bank worth the name should easily be able to see the linkage of your asset accounts and use that in their decision.

Another thing to understand about how lending works...banks will go broke loaning money to people with great credit. Most of those are loss leaders so they can make money on subprime and still keep their risk portfolio balanced. Sometimes, you could literally get turned down for having too good of credit. That will not be the stated reason, bit it happens. It gets even worse with auto dealers. Not sure about farm equipment as our loans on them were strictly AG loans and not handled by dealers...anyway, auto dealers judge you by appearance and what you drove up in. If they think you look like a good risk, they will send your application to prime lenders. If you look bedraggled, they will send it to subprime. If they guess wrong, you may not get a good offer. Most of the time when you get dealer financing it is just a passthrough to a bank or finance company. The in-house finance like FMC is not often the best deal. Dealers get incentives to use them, so they may not tell you about a better rate...they usually send to 3-5 lenders when they pull credit. Then the dealer has a couple of % to play with to make extra money. The goal for them is to get you to bite while maximizing their ROI.

 

[Jstpssng]

I'm not going to name names, but at least one of those you mentioned has a bad reputation in the business for shady stuff. Some will find excuses to avoid loans to older people as they fear potential risk due to end of life issues...so they will make excuses. Some are just poorly managed. Any bank worth the name should easily be able to see the linkage of your asset accounts and use that in their decision.

Another thing to understand about how lending works...banks will go broke loaning money to people with great credit. Most of those are loss leaders so they can make money on subprime and still keep their risk portfolio balanced. Sometimes, you could literally get turned down for having too good of credit. That will not be the stated reason, bit it happens. It gets even worse with auto dealers. Not sure about farm equipment as our loans on them were strictly AG loans and not handled by dealers...anyway, auto dealers judge you by appearance and what you drove up in. If they think you look like a good risk, they will send your application to prime lenders. If you look bedraggled, they will send it to subprime. If they guess wrong, you may not get a good offer. Most of the time when you get dealer financing it is just a passthrough to a bank or finance company. The in-house finance like FMC is not often the best deal. Dealers get incentives to use them, so they may not tell you about a better rate...they usually send to 3-5 lenders when they pull credit. Then the dealer has a couple of % to play with to make extra money. The goal for them is to get you to bite while maximizing their ROI.

That's why I go through my CU.

 

[Torvy]

I use one, too, but many of them do the same things. The reason CU is cheaper is because they are basically non-profit organizations.

You can get up front lending with many banks, too. There are tradeoffs, though. You can sometimes get better deals from dealerships because of their incentives. Banks only get paid on the loan. Dealers make money from multiple streams including volume sales, service contracts and add-ons.

 

[Herness]

Prior to teaching, I spent over 25 years of my professional life working for two of the largest bank/lending organizations in the US. I agree with what the KCC guy said. Any pull granting credit is going to be a hard pull. There are other factors that can play into not as well, though. If you 'shop' credit for more than about 2 weeks prior to taking out a loan, your score will drop a little. There is 0% chance that all else being equal, a different lender would change your score in either direction.

Credit scores are also not just for loans. Your insurance rates will be lower if you have good credit, too. People with good credit are less of a risk.

The reason having too much available credit hurts your score a little is that there is a risk that after making you a loan (car, tractor, house, etc.) that you may go deeper into debt using that credit. This all comes from years of data analysis and indicators of shifts in credit worthiness.

Fyi, all lenders do not use FICO scores the same way. One of the banks I worked for used it in combination with their own proprietary model. For them, trading in a vehicle was better than cash down (again, Ceteris peribus). People who didn't trade would often still have their old car, so if money was short, they may skip payments or default. Contrary to many opinions, modern banks have no interest in repo. They will get much more by working out repayment terms.

I spent a lot of my time reading credit and investigating shady practices by dealerships. If anyone has any questions, I am happy to share my experience.

That was informative. Thanks

 

[sd455dan]

this news broke today

debt on Credit cards in the US

Now exceed One trillion

Credit card debt set to hit $1T as chronic inflation crushes Americans

Federal Reserve data released Monday is expected to show that U.S. households are carrying $1 trillion in credit card debt, the highest level on record.

www.foxbusiness.com

Half wondered if "everyone" got a small decrease in their credit rating just because

 

[Torvy]

The lender has zero percent impact on your credit score, unless you are getting a loan from a shark that doesn't report.

Hey there! It's interesting to hear about the difference in credit score impact between a Kubota loan and a PNC loan. Various factors can affect credit scores, including the type of loan and the lender.

 

[Hay Dude]

Kubota just dropped their “0%” interest they had available on farm machinery up to 84 months! . The best I see now is 1.99% for 5 years.

 

[Hersheyfarm]

Looks like this thread has evolved, but OP, credit scores fluctuate. I have a thread on another forum because i was at 850 for a few weeks. Has since dropped top 843, the 845. It makes no sense. The weird thing is the credit bureaus know what you owe, but not what you make.

 

[big bubba]

if you're that far along in retirement, good credit rating, & w/o debt, why are you concerned with a 24 pt movement? does it really matter? maybe just another variable rating like the DOW from day to day, sounds like you're in good shape, best regards

 

[MissWan]

You make a valid point about credit scores and their fluctuations. In the grand scheme of things, a 24-point movement might not be a significant concern, especially when someone is in good financial shape and enjoying retirement.

Speaking of financial matters, for anyone looking for guidance on mortgages or financial planning, consulting with a Mortgage Broker in Bridgend can be a smart move. They can provide personalized advice and help individuals make informed decisions regarding their financial future.

Thanks for sharing your perspective, and you're right that sometimes these credit score changes are just part of the financial landscape.

 

[WM75Guy]

Probably not an issue today for the OP but the type of score also comes into play. FICO and VantageScore, the 2 largest, have different weighted values. FICO is owned by Fair Isaac Corp and is independent of the 3 major credit reporting companies. That is what most lenders use. TransUnion, Equifax, and Experian jointly developed and own VantageScore. They can market that score without having to pay Fair Isaac Corp for your FICO score. VantageScore can vary from each of the 3 credit reporting companies, depending on who reports credit to them and how often.

We just paid off our mortgage, which was 75% of our total debt. My FICO score dropped 3 points, but my VantageScore went up 7 points. VantageScore always seems to be about 25 points below FICO and has larger point swings. Debt is also broken up into categories: revolving debt, mortgages, car loans, and personal loans. Tractor loans are classified as personal loans, not car loans. That affects your credit mix and thus your score.

We bought 2 new vehicles in 2023 using low interest loans. Credit scores dropped for a short time but quickly rebounded. Last major purchases for a while, they will be paid off this summer. Going forward we will pay cash for any large purchases so credit score for us will be a moot issue.

 

[Torvy]

Lenders typically have their own tiers of FICO scores. One that I worked for considered anything over 720 to be Prime. 719-600 near Prime and below 600 sub-prime. They also had a hard cutoff at 500. On some types of loans, Super Prime (800+) also came into play. The point here being that unless you are close to a tier with a lender you hope to give you credit soon, these little fluctuations are meaningless. Also, that lenders have their own definitions and ranges for these so YMMV.