Basically his dealer didn’t want to go the extra mile and request a bump up, and OP told them to ask or no deal.
Repos are making the banks more stringent so a 709 won’t bump up to T1 automatically.
Yeah I have had 4 leases through gm financial never late so they called and got it bumped I’m happy
Honestly, it’s more likely OP was approved for tier 1 from the start, but with a “borderline” score, the dealer tried to markup the rate and tell OP that he only qualified for tier 2. When OP walked, they told the gm/gsm and he relented and let them use the buy rate.
This is very common and would happen more often than getting the tier bumped from 2 to 1. It’s bank dependent but a bunch of banks have the same rate for tier 1-3 anyway.
A 4 paid no prior late auto loan history with the bank would not get a tier 2 approval with a score starting the 7s. I has a lady with a score in the low 500s get auto approved for tier 3 and we got her bumped to tier 1 as she always paid TFS on time. Didn’t matter that she didn’t pay anyone else - had late credit cards, medical debt, student loans. She always paid Toyota and that’s what they cared about.
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I would bet OP’s callback was approved at T2 and the F&I manager would not/could not call their buyer to get an exception for T1 (not all captives have human analysts working as late as dealers are open). Whether the GSM had more juice, or they just got a human on the phone, they got their exception.
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How come credit karma is wrong often? Like I applied for financing and they got a 820 transunion but credit Karma been at a solid 780 or so. How can it be off by so much?
Credit Karma is a good baseline, but not a real fico score. It’s a vantage score which calculates differently. Basically a different proprietary formula.
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It’s a completely different scoring model, which is discussed in the credit thread.
Almost nobody’s 3 bureaus are 100% identical at any given time, not all creditors report to all of them. Any credit score is the result of putting one bureau’s data at that point in time into the hopper, along with any other variables it considers (Beacon for instance used to weight your zip code). Most auto creditors use one of the FICO models, some will use Auto Enhanced Equifax, Chase can usually override whatever they use with their own internal score that you don’t have access to even as a Chase Private Wealth customer.
The models themselves are proprietary, but nobody uses Credit Karma’s score for lending decisions: it’s something they came up with that seems to be directional but not accurate.
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GM financial uses transunion. And scores do vary widely. My Experian is 810 and Transunion was 695. Ended up having to have my wife co-sign but was able to get tier 1.
Honestly, I wish they would have just asked for income verification. The dealer said that was the last resort, but I’d rather just show proof of income. GMF was running around calling Chrysler and my credit union to make sure I wasn’t making payments on the two flips I sold a month prior.
I can’t speak specifically for GM, but I have absolutely seen different captive banks pull different bureaus in different regions of the country, but using the same scoring model. Unlike a credit card where that bank usually pulls the same bureau every time.
As they should, everyone churning trade lines like that will pay for it, more-so in time than dollars. Changing cars every month is not typical, and is weighted accordingly.
No, it was a PITA. They requested lease satisfaction letters from both banks which I provided, and they still claimed that wasn’t enough. I was very close to unwinding my deal - they just really didn’t seem interested in funding the loan. At the end of the day, the dealer really pushed their GM contact to fund it because they had stated prior to taking delivery of the car that it would be funded with those letters, which for some reason they decided that wasn’t enough proof.
As far as all the captives, GM by far is the worst to deal with. They denied a lease transfer years ago when I literally had no car loan on my credit and 850 credit.
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No argument they suck, but you still did more business with them. You are in the less than 1% that were off the flow chart this month (of probably 50,000 auto credit decisions), in the bottom 5% of those who had multiple unsettled trade lines, and a score that didn’t merit an auto approve. Not to say you aren’t worthy, but you’re surprised a company that doesn’t do exceptions well didn’t expedite your exception?
You could have brought your own financing or taken your business elsewhere. And not picking on you but for the next person — I think you got lucky. It could have ended with a flat decline. These lenders lose money on flips, don’t expect them to make it any easier. And if they are churning your Transunion each time, you’re just grinding that down further. It will absolutely recover, but it takes time.
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There seems to be the misconception here that score is the end all be all of credit when banks don’t even look at your score. It’s just a made up numerical representation of where you stand so consumers can understand it quickly. The algorithms and the people look at your credit history, not your score. Your score is just a by product of your history, but it can be manipulated in either direction and doesn’t account for cases where there isn’t enough history, there are too many recent trade lines opened/closed, etc. An 18 year old can have a 780 score with 1 credit card, but that doesn’t mean a bank will approve them for an auto loan at tier 1 or at all.
Sorta Misleading.
If your score is 550, then do not expect a T1 from any bank.
good numbers are misleading, bad ones aren’t.
You’ll love it. Start it up in quiet mode. Wont have to worry about the neighbors then
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While I agree with you in theory. I’ve seen 550s get T1 and 680s get flat out denied. So I think all scores are very misleading and it’s very situational. My score can jump 40-50 points depending on how much CC spending i have that month. Spend $15k in a month and your score plummets, spend only $2 or $3k the next month and it jumps.
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Getting a 550 T1 is one desperate bank and they are nuts to approve that. I actually would like to see such an example of 550 Tier1. That’s some stupid lender or that someone really put down 90% and the T1 is on the final payment.
Toyota and Ford come to Mind, Toyotas T7 rate was 18% if I remember right. But they still won’t give T1 to a 550
But Having a 550 means you have shit credit, no doubts about it and will most likely not pay them back.
Having a 850 means you haven’t done any defaults but that doesn’t mean they should loan to you. It just means you haven’t been a bad boy anywhere.
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How did you get the GM employer discount? Did the dealer give you a pin?
Thanks
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My brother works at gm Parma plant and my dad retired from there 3 years ago . That’s how I get gm employee pricing
Nice. Its a great deal considering what the market is.
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