Kubota loan lowers credit score VS PNC Loan raises credit score

[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.

 

[68BULLITT]

So, about your credit score going down after you got that Kubota 0% deal, I had something like that happen, too. When I got a new loan, my credit score initially dropped a little. This is because the new loan meant I owed more money, and checking my credit for the loan could make the score go down slightly.

To help my credit score get better, I used a short-term loan from this app: https://apps.apple.com/us/app/payday-advance-online-loans/id1661084874. I borrowed a little money and paid it back quickly. Doing this showed I was responsible with money and helped my credit score increase again.

 

[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.