To make sure, I logged into AFS website, I could see my account info and all that, nothing unusual.
Then I decided to check Credit Karma, I realized that there was no hard inquiry. But when I looked at the accounts, I saw AMER HONDA as paid off and closed.
I’m going to call the dealer on Monday and check if this happened because they tried to run my credit multiple times or something. That’s the only thing that comes to mind.
Wanted to check with you all first. Has anyone experienced something like this?
It doesn’t state that your credit application was declined. It’s boilerplate language for items that may negatively affect your credit score.
That’s all it is. Unless there’s more to the letter you’re not sharing, there’s no need to worry. Your credit score is as good as it gets, and the letter states there’s no derogatory info.
Ah ok. Something must have flagged when it went to underwriting at AFS. You’ll have to call the finance manager that worked your deal and see if there’s anything they can do with AFS.
Otherwise, AFS is saying your DTI is too high, you are over-extended/too many commitments, too high balances, or a combination of all of the above.
Even though it’s a one-pay, the lease is still processed as a regular lease as the lessor is evaluating the credit-worthiness of your borrowing and returning the asset.
I bet you are all good. You have an active AFS account it appears showing your car, so create an account online or call the automated 800 number and see what is up.
CK probably shows it like that as a one pay, and I am guessing someone at AFS overrode the initial denial but not before the auto letter was generated.
If it didn’t fund and you took possession on 4/16 it would be very strange for the Finance Manager not to have heard from AFS for that long on the non-funding situation and to not have contacted you even before 4/24.
I wouldn’t even bother calling the dealer or AFS, if your account is showing as live and in good standing when you look online then you’re good to go. As mentioned it’s most likely from the first time they ran your credit if they pulled it several times.
If there really was an issue then the dealer and/or AFS would be calling you (and they would have done it a long time ago, not 3 weeks after you signed).
It may be an automatic generated letter for first pull…then underwriting took over etc. shouldn’t worry at all, but call AFS just to verify and like @j_e_f_f said if there was a denial they would be calling you from the dealer first
If there was a denial AFS would be wanting that expensive asset back real quick. Something automated probably just dun-goofed, happens a lot.
I’d kick back with a fruity drink with an umbrella till some fire alarms start blaring, and then its the dealer’s problem not your (except finding a new car).
I agree with all of you. Being able to log in to the AFS website with my VIN, SSN, and ZIP code, seeing the account marked as paid off in CK, and not getting a call from the dealer so far all seem like good signs.
That said, I still plan to call and confirm what caused this. Even if it was eventually approved, I want to understand why the first credit run was denied. That’s a concern for me, especially since I try to keep my DTI at a very reasonable level.
I’m not super experienced with all of this, but common sense tells me that needing manual intervention isn’t exactly a great sign for the future.
This. Same thing happened for my mother’s CRV and HFS. It was due to ‘incomplete information’. They then resubmit with the requisite information and it’s approved but the prior attempt creates and autogenerated letter. You might not even know about the first application.
I really wouldn’t worry. How long is your credit history? Based on the letter it looks like not that long. It could be that AFS basically auto-denies any application with less than X years of history without manual intervention.
~7 years. That’s a good guess. This is my first ‘luxury’ car. 4xe had a similar MSRP but I believe Acura considered as high end, so maybe their financing has stricter requirements?
Hmm, I was just guessing based on the letter, but with 7 years and at least one previous auto loan/lease I doubt it would be a credit history issue. It could be as simple as something was just mis-entered on the dealer’s side as mentioned, who knows.
.