FICO Scoring Version For Class A Loan?

[mromberg1]

Anyone know what scoring model is used for RV loans? I have access to all of my scoring models and scores vary from version to version. Thanks!

[SKI COACH]

If your score is over 800 it shouldn't make a difference what model they use...

[paddler1954]

With 20% or more down then a mid 700 would probably do the job.

[Kraken]

I recently learned of another score that follows all of us around, but we can't see it. It's called a "Reliability Index". This is something that should be made public as well. I hate it when they do sneaky stuff like that.

[Crose55]

‘I think it depends on the dealership and financial institution. We just purchased a Class A from a large dealership and they used only Experian and FICO score. We paid a large amount down and have an upper 700 score, and no revolving debt or mortgage. However, since we are full timers the best loan we could get was with 6% interest, which we plan now to pay off when the stock market rebalances itself.

[Sonic]

As stated above, it depends on the financing institution and their specific underwriting guidelines, but most will use FICO-8 or the newer FICO-9. RV loans are different than auto loans, so it's unlikely a lender would use the FICO auto scoring.

[elite wa]

As a banker for well over 20 years all lenders use their own scoring model. The credit reports are supplied by the provider whether that’s equifax, Experian or trans union. When the lender receives their report they have different weighting based on their underwriting guidelines. This is the reason why you can pull your own report at home and it can be a different score from a lender even when they use the same provider. Additionally a lender may have their credit scorning model as well that is proprietary. If your score is 800 you won’t have a problem getting a loan at the best price as long as your DTI is with in line.

There are many factors closing your revolving credit lines is always bad even if you don’t use them because it lowers your capacity to borrow. Not having a mortgage hurts your chances as well. You may have a good score but with no mortgage you don’t have proof you can handle a “big” payment. All underwriters look at this so it’s more then just a score: I have declined loans to customers that had high 700 scores because they only had one or two credit lines open.

[Crasher]

Originally Posted by elite wa

As a banker for well over 20 years all lenders use their own scoring model. The credit reports are supplied by the provider whether that’s equifax, Experian or trans union. When the lender receives their report they have different weighting based on their underwriting guidelines. This is the reason why you can pull your own report at home and it can be a different score from a lender even when they use the same provider. Additionally a lender may have their credit scorning model as well that is proprietary. If your score is 800 you won’t have a problem getting a loan at the best price as long as your DTI is with in line.

There are many factors closing your revolving credit lines is always bad even if you don’t use them because it lowers your capacity to borrow. Not having a mortgage hurts your chances as well. You may have a good score but with no mortgage you don’t have proof you can handle a “big” payment. All underwriters look at this so it’s more then just a score: I have declined loans to customers that had high 700 scores because they only had one or two credit lines open.

So are you saying that because I have no mortgage on either home, all my vehicles are paid for and our two credit cards are paid up each month, I would have trouble getting an RV loan at your bank because I am not making monthly payments? Even with a credit score over 800?? I thought being debt free was a good thing.

[Gary RVRoamer]

Debt free is good for your financial balance sheet, but not necessarily good for your credit rating. If you never borrowed money and repaid it, how does a creditor know you will repay?


Perhaps no issue for a small loan, but if you ask for $200k for that new coach and have no repayment track record, the lendor may look twice. Or he may just give you the moolah...

[petrel]

Originally Posted by Crasher

So are you saying that because I have no mortgage on either home, all my vehicles are paid for and our two credit cards are paid up each month, I would have trouble getting an RV loan at your bank because I am not making monthly payments? Even with a credit score over 800?? I thought being debt free was a good thing.

Yes, you need to have a little credit to have your creditworthiness judged. However, if you have assets instead of credit, you may wish to get your financing from your own bank. If you have an abundance of collateral, i.e. enough net worth to encumber to cover the loan, then they may consider a loan on those terms, instead of just a credit score.

[Crasher]

Originally Posted by petrel

Yes, you need to have a little credit to have your creditworthiness judged. However, if you have assets instead of credit, you may wish to get your financing from your own bank. If you have an abundance of collateral, i.e. enough net worth to encumber to cover the loan, then they may consider a loan on those terms, instead of just a credit score.

It was a hypothetical question. We have financed motorhomes in the past, but only 2-3 years. Also financed our second home in AZ for 3 years. We have never liked monthly payments and almost always did annual payments. We won't be in the market for a motorhome for many years, so probably doesn't matter. I was just intrigued by the policy of having to be making payments to qualify for a loan.

[gatorb8]

my insurance rates at Progressive jumped up one year, when I inquired they sent me to the risk department, I was told my credit rating went down cause I cancelled a credit card, go figure..... the system is far less than perfect ....now I keep old credit cards and never use them.....the board tilts left, right, back, forth.....just have to play the game

[elite wa]

Originally Posted by Crasher

So are you saying that because I have no mortgage on either home, all my vehicles are paid for and our two credit cards are paid up each month, I would have trouble getting an RV loan at your bank because I am not making monthly payments? Even with a credit score over 800?? I thought being debt free was a good thing.

I am saying that exactly, many lenders look at it this way. An 800 fico score with two trade lines open that don’t have balances doesn’t prove you can handle payments. Obviously income and assets can make a big impact. I see lots of college grads that have lots of student loan debt and nothing else with 800 fico’s but their loans are still in deferment and have never made a payment. It’s not just the score it’s what makes up the score. A 1,000 balance on credit cards with total limit of 2,000 is actually worse for your credit score then 30k in balances and 100k in limits.

[elite wa]

Originally Posted by gatorb8

my insurance rates at Progressive jumped up one year, when I inquired they sent me to the risk department, I was told my credit rating went down cause I cancelled a credit card, go figure..... the system is far less than perfect ....now I keep old credit cards and never use them.....the board tilts left, right, back, forth.....just have to play the game

The reason why your risk went up was because by closing the card you decreased your capacity to borrower therefore increasing your utilization percent. The credit bureau’s usually have a calculator that will demonstrate how balances to available limit affect your score. From an insurance underwriters standpoint if you lose capacity to borrow that potential affects your ability to cover your deductible when it comes to your claim therefore higher risk. You aren’t sending them any of your bank statements each month so the only available funds that they can see is your available credit.