Credit Score of 728 and approved for a retarded rate
#1
06-20-2008, 11:28 AM
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Credit Score of 728 and approved for a retarded rate
Ok, has anyone that recently purchased a brand new bike from a dealership applied for financing through Honda? I went about a month ago to see what they could do for me and I was approved for 12.99% financing. Immediately I thought that was about right. The sales manager told me I didn't qualify for the special 3.99% for 36 months. I'm 23, just out of school, about 2 years of flawless credit, including 2 major credit cards, all paid up to date and never default; what little student loans I do have are well under control and will be paid off in the next 3 months; and 14 months of a 8.99% motorcycle loan from my bank that I paid off once I sold my bike, with no problems financially ever recorded. I have never been late on any payments or missed any payments.
3 days ago, I was talking to my mother who is a bank manager about my credit score and why I may have been given such a high rate. I had no idea what my score was, so I decided to buy a credit report. Came back 728 being the lowest of the 3 major institutions on a scale of 330-830, therefore classifying me into the top tier bracket with an Excellent credit rating. She told me to go back to the dealership and ask for a copy of the credit report they looked up to see if it was indeed mine.
Has anyone else had something like this happen to them?
Also - the local dealership is a Honda Exclusive dealership. Do dealers that sell multiple makes of bikes like www.andrewscycles.com usually do their own financing other than the Manufacturer specials? I haven't really checked yet, but I'm trying to find the best deal on a 08 600RR with a good rate.
Thanks for any advice!
3 days ago, I was talking to my mother who is a bank manager about my credit score and why I may have been given such a high rate. I had no idea what my score was, so I decided to buy a credit report. Came back 728 being the lowest of the 3 major institutions on a scale of 330-830, therefore classifying me into the top tier bracket with an Excellent credit rating. She told me to go back to the dealership and ask for a copy of the credit report they looked up to see if it was indeed mine.
Has anyone else had something like this happen to them?
Also - the local dealership is a Honda Exclusive dealership. Do dealers that sell multiple makes of bikes like www.andrewscycles.com usually do their own financing other than the Manufacturer specials? I haven't really checked yet, but I'm trying to find the best deal on a 08 600RR with a good rate.
Thanks for any advice!
#2
06-20-2008, 11:56 AM
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RE: Credit Score of 728 and approved for a retarded rate
i won't pretend to know EXACTLY how it works....except that I do know time also plays a role...meaning...if you have little credit for 1 year...you may have a credit score of 750 but it's only for a short period of time so it really doesn't reflect your "history" as that is what the credit score is used to determine...how likely it is that you will pay your debt over time...(now i know time IS a factor of credit scores but that is a nebulous quality of it)...sooo...that being said, Honda may have said congrats on having a good score, but it's too short of period that they are comfortable with, hence the higher rate because you are higher risk..plus being younger doesn't help....
i know guys your age that still need a co-signor, so you should be happy you got approved on your own...
like i said, i have no idea if i am even remotely right...but it could possibly explain what happened....my .02 for what it's worth
i know guys your age that still need a co-signor, so you should be happy you got approved on your own...
like i said, i have no idea if i am even remotely right...but it could possibly explain what happened....my .02 for what it's worth
#3
06-20-2008, 12:00 PM
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RE: Credit Score of 728 and approved for a retarded rate
ORIGINAL: ffingers
i won't pretend to know EXACTLY how it works....except that I do know time also plays a role...meaning...if you have little credit for 1 year...you may have a credit score of 750 but it's only for a short period of time so it really doesn't reflect your "history" as that is what the credit score is used to determine...how likely it is that you will pay your debt over time...(now i know time IS a factor of credit scores but that is a nebulous quality of it)...sooo...that being said, Honda may have said congrats on having a good score, but it's too short of period that they are comfortable with, hence the higher rate because you are higher risk..plus being younger doesn't help....
i know guys your age that still need a co-signor, so you should be happy you got approved on your own...
like i said, i have no idea if i am even remotely right...but it could possibly explain what happened....my .02 for what it's worth
i won't pretend to know EXACTLY how it works....except that I do know time also plays a role...meaning...if you have little credit for 1 year...you may have a credit score of 750 but it's only for a short period of time so it really doesn't reflect your "history" as that is what the credit score is used to determine...how likely it is that you will pay your debt over time...(now i know time IS a factor of credit scores but that is a nebulous quality of it)...sooo...that being said, Honda may have said congrats on having a good score, but it's too short of period that they are comfortable with, hence the higher rate because you are higher risk..plus being younger doesn't help....
i know guys your age that still need a co-signor, so you should be happy you got approved on your own...
like i said, i have no idea if i am even remotely right...but it could possibly explain what happened....my .02 for what it's worth
#4
06-20-2008, 12:03 PM
RE: Credit Score of 728 and approved for a retarded rate
23, just out of school? I'll bet that they want to get as much money before you kill yourself.
ORIGINAL: clockworkcbr
Ok, has anyone that recently purchased a brand new bike from a dealership applied for financing through Honda? I went about a month ago to see what they could do for me and I was approved for 12.99% financing. Immediately I thought that was about right. The sales manager told me I didn't qualify for the special 3.99% for 36 months. I'm 23, just out of school, about 2 years of flawless credit, including 2 major credit cards, all paid up to date and never default; what little student loans I do have are well under control and will be paid off in the next 3 months; and 14 months of a 8.99% motorcycle loan from my bank that I paid off once I sold my bike, with no problems financially ever recorded. I have never been late on any payments or missed any payments.
3 days ago, I was talking to my mother who is a bank manager about my credit score and why I may have been given such a high rate. I had no idea what my score was, so I decided to buy a credit report. Came back 728 being the lowest of the 3 major institutions on a scale of 330-830, therefore classifying me into the top tier bracket with an Excellent credit rating. She told me to go back to the dealership and ask for a copy of the credit report they looked up to see if it was indeed mine.
Has anyone else had something like this happen to them?
Also - the local dealership is a Honda Exclusive dealership. Do dealers that sell multiple makes of bikes like www.andrewscycles.com usually do their own financing other than the Manufacturer specials? I haven't really checked yet, but I'm trying to find the best deal on a 08 600RR with a good rate.
Thanks for any advice!
Ok, has anyone that recently purchased a brand new bike from a dealership applied for financing through Honda? I went about a month ago to see what they could do for me and I was approved for 12.99% financing. Immediately I thought that was about right. The sales manager told me I didn't qualify for the special 3.99% for 36 months. I'm 23, just out of school, about 2 years of flawless credit, including 2 major credit cards, all paid up to date and never default; what little student loans I do have are well under control and will be paid off in the next 3 months; and 14 months of a 8.99% motorcycle loan from my bank that I paid off once I sold my bike, with no problems financially ever recorded. I have never been late on any payments or missed any payments.
3 days ago, I was talking to my mother who is a bank manager about my credit score and why I may have been given such a high rate. I had no idea what my score was, so I decided to buy a credit report. Came back 728 being the lowest of the 3 major institutions on a scale of 330-830, therefore classifying me into the top tier bracket with an Excellent credit rating. She told me to go back to the dealership and ask for a copy of the credit report they looked up to see if it was indeed mine.
Has anyone else had something like this happen to them?
Also - the local dealership is a Honda Exclusive dealership. Do dealers that sell multiple makes of bikes like www.andrewscycles.com usually do their own financing other than the Manufacturer specials? I haven't really checked yet, but I'm trying to find the best deal on a 08 600RR with a good rate.
Thanks for any advice!
#5
06-20-2008, 12:07 PM
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RE: Credit Score of 728 and approved for a retarded rate
my short personal story...i had a credit rating under 600 due to some missteps when i was younger...22 and below....hell a bank wouldn't even give me a bank account...yeah that bad....i am now 29 out of school, married and am working on buying my third house....i mention this just to show the power of time...i cleaned up my act and my score is like 690-705....but i have been spot on for payments and debts over the last 8 years...i get the best rates and approvals for everything....time is the key...and unfortunately...there is NOTHING you can do about it....just sit tight, it will get better....
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06-20-2008, 12:33 PM
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RE: Credit Score of 728 and approved for a retarded rate
ORIGINAL: ffingers
my short personal story...i had a credit rating under 600 due to some missteps when i was younger...22 and below....hell a bank wouldn't even give me a bank account...yeah that bad....i am now 29 out of school, married and am working on buying my third house....i mention this just to show the power of time...i cleaned up my act and my score is like 690-705....but i have been spot on for payments and debts over the last 8 years...i get the best rates and approvals for everything....time is the key...and unfortunately...there is NOTHING you can do about it....just sit tight, it will get better....
my short personal story...i had a credit rating under 600 due to some missteps when i was younger...22 and below....hell a bank wouldn't even give me a bank account...yeah that bad....i am now 29 out of school, married and am working on buying my third house....i mention this just to show the power of time...i cleaned up my act and my score is like 690-705....but i have been spot on for payments and debts over the last 8 years...i get the best rates and approvals for everything....time is the key...and unfortunately...there is NOTHING you can do about it....just sit tight, it will get better....
#7
06-20-2008, 01:26 PM
RE: Credit Score of 728 and approved for a retarded rate
Agreed. Length of credit history is very important, what I was going to say as a matter of fact. Until you have credit established for 3 years, there is a negative affect on your credit report. Like as mentioned before, not only the score is considered when evaluating a credit report. balance to limit ratios are also important on existing credit lines. Also, paying off a loan before you are supposed to isn't bad, but it also doesn't show your ability to pay over time (not saying you don't). If you just pay something off they assume you just got a bonus, tax return, or some lump sum of cash that doesn't necessarily negate whether or not you are capable of paying over the term of a loan. Remember, they want you to keep the loan for the entire loan period, or they don't get all their interest.
I've been told all the time, there is nothing wrong with your credit, you just don't have enough. 3 years is the mark.
I've been told all the time, there is nothing wrong with your credit, you just don't have enough. 3 years is the mark.
#8
06-20-2008, 02:05 PM
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RE: Credit Score of 728 and approved for a retarded rate
i am a finance manager at a car dealer, and i can say yes i agree with what has been said, "time" is the issue here. that being said the 12.99% rate is also due to the fact that the honda financing is really just a GE Money Honda branded Credit Card....its unsecured, and is basically just like a normal credit card. thats why the higher rate. you could find a local bank that does motorcycle loans and refinance that baby. thats what i did.
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06-20-2008, 02:15 PM
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RE: Credit Score of 728 and approved for a retarded rate
Time is not exactly the problem, as some have eluded to. Time factors into your score. Your score is fine, so time isn't a issue.
What is an issue is the dealer has the ability to tack on extra points if they want. Honda may have approved you for 3.99 and the dealer saw a young person that really wants a bike and thought "hey we can bring in an extra 9% off this guy". Go join a credit and get a quote from them. I was getting 3.5% when I was in my early 20's. Find a good quote and ask the dealer to meet or beat it the %. Their story will probably change.
What is an issue is the dealer has the ability to tack on extra points if they want. Honda may have approved you for 3.99 and the dealer saw a young person that really wants a bike and thought "hey we can bring in an extra 9% off this guy". Go join a credit and get a quote from them. I was getting 3.5% when I was in my early 20's. Find a good quote and ask the dealer to meet or beat it the %. Their story will probably change.