Anyone know if BMW Financial reports to the credit bureaus differently than other banks? I have leased all my life and I was recently leasing a 2016 Jeep Grand Cherokee and my credit was 750, I traded the Jeep in (had 18 payments left) and leased a new '19 BMW X4 in late January. Now my score dropped to 650 and it’s showing a $19,000 increase in total debt. What gives?
Might want to get your credit report and check it – 100 point drop is serious
You leased a significantly more expensive car and most likely rolled in negative equity from the Jeep.
Your debt to income ratio before leasing the X4 was one thing and then after leasing the X4 was significantly impacted by the difference.
Your overall debt has increased significantly. BMW X4 is an expensive car. I’d love to see the lease sheet on this deal. Sounds like a nightmare.
Though I will say a 100 point drop is serious. As Dany said, you should pull your own credit.
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Actually the X4 ended up being around the same price. The Jeep was a GC High Altitude $53995 MSRP back in 2016. My X4 was $56995 MSRP and I got $7000 discount. My Jeep payoff was $31,000 and the dealer gave me $30,000 for it so only $1k of negative got rolled into the new lease. I had $3700 DAS and my payment is cheaper than the the Jeep was.
i like creditkarma, you can look at report/score whenever you want. Between that and my credit union i can look at all three scores without paying a dime
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I’m pretty sure that leases show up as debt, so take the $1000 of negative equity and add the difference between your sales price and down payment. That would be your new auto debt. Then subtract the amount that you owed on the Jeep. Is that difference $19k?
Or, perhaps your Jeep debt hasn’t been dropped from your report yet?
Still surprised that you would get such a big ding on your score, though.
Credit Karma was the first place to notify me of the drop last week. Then I checked my credit card website scores (Capital One, Discover etc) and those hadn’t changed. Then today I checked Capital One and it dropped there too. Discover hasn’t updated and I checked my FICO last week and that hadn’t changed yet either. The Jeep lease had a $8800 balance and the new X4 shows as $19,000 on my report. My credit didn’t budge when the Jeep Lease came up but now it is with the new lease.
This is what shows on Capital One
You are correct. Leases typically do show on the credit report as debt.
If the X4 shows ups as $19k and that is the amount that total debt rose, then I bet they haven’t dropped the Jeep from your report yet. That should help, since the net change was only $10k.
This feels like a derogatory mark showing up at the same time - late payment, etc. Any chance Jeep recorded a late payment for you because the dealer didn’t pay off your car fast enough?
You should not see a 100 point drop for a new lease.
you need a detailed report – reach out a smb lender and ask them for a loan – they will do a soft pull and you have the right to see your report
The 100 point drop is what is concerning. The debt rose less than 10%. I would not have thought that would have caused 100 points to drop.
Need more details. Good job on the deal, by the way. Surprised to have seen you had so many payments left on the High Altitude and so little negative equity.
Yea I’m pissed!
Thanks, I had 14 payments on the High Altitude not 18 sorry. I was well under my mileage too.
Regardless of how many payments you had, usually GC don’t have any equity throughout a lease. I’m sure under mileage helped. Probably could have gotten more money for it through Carvana/Vroom. Neither here, nor there, what’s done is done!
I checked those, they only offered 29,000. BMW in my city was gonna give me $31k but they couldn’t get close to the deal that BMW in Chicago was offering so I went with the Chicago deal even thought they gave $30K for the Jeep.
So I just pulled my credit on MyFico and it still shows as 737. So I’m super confused. How would Credit Karma or Capital One have better info than Fico?
They wouldn’t. Your 737 makes far more sense than 650. Maybe it’s just 737?
Those scores yo-yo up and down all the time. Don’t worry about it - particularly when they have not discharged the old debt, so it looks like you are carrying two leases …
The Jeep lease isn’t showing on any of the reports anymore.
The scores should go back up in no time …
There’s about 900 different scoring models out there, and Credit Karma, Cap 1, etc aren’t a true FICO. If FICO says 737, I wouldn’t worry about the other scoring models.