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Hey everyone,

 

My wife and I recently bought a 2019 Silverado 1500, and we got a letter in the mail yesterday from Ally Financial saying that our request from them had been denied. I'm assuming the finance department had them as part of their search the day we purchased, but we ultimately went with a local credit union. Ally was never mentioned to us during this part of the process. No biggie. I know they usually shop several places for rates.

 

Anyway...the issue...Ally claimed to have denied us because of the FICO score and subsequent reasoning for their said score on each of us. So, to elaborate... Ally's letter listed each of our Experian scores. We were both over 840. Our SageStream scores were each just over 700. SEVEN. HUNDRED. Their reasons were we didn't have enough credit cards, our oldest account was not old enough(over 12 years isn't long enough?), not enough trade transactions(whatever that is), and our area codes in our phones didn't match the one of our current address(seriously).

 

Has anyone else gotten a similar letter from Ally? I'm not too concerned as our other scores were all fine. I've just never heard of this company before, and when you read online about them, it's all very similar. Scores that are even farther apart than ours were.

 

Very interesting and almost shady, and depending on what you may be financing, if the company uses them for your score/report, it could make for an interesting time even if you have perfect credit.

 

Just very curious what others experiences have been...

 

 

 

 

 

Sent from my SM-G965U1 using Tapatalk

 

 

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I got a similar letter from bank of america and like you I have an excellent credit score in the high 700's. There reason was because although high I had limited credit.

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Things will get better for Ally when Jimmie Johnson wins a couple of races, how do you think they are paying his salary, (by gouging you on the rate)?

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On 6/11/2020 at 12:11 PM, RStrain56 said:

 

Hey everyone,

 

My wife and I recently bought a 2019 Silverado 1500, and we got a letter in the mail yesterday from Ally Financial saying that our request from them had been denied. I'm assuming the finance department had them as part of their search the day we purchased, but we ultimately went with a local credit union. Ally was never mentioned to us during this part of the process. No biggie. I know they usually shop several places for rates.

 

Anyway...the issue...Ally claimed to have denied us because of the FICO score and subsequent reasoning for their said score on each of us. So, to elaborate... Ally's letter listed each of our Experian scores. We were both over 840. Our SageStream scores were each just over 700. SEVEN. HUNDRED. Their reasons were we didn't have enough credit cards, our oldest account was not old enough(over 12 years isn't long enough?), not enough trade transactions(whatever that is), and our area codes in our phones didn't match the one of our current address(seriously).

 

Has anyone else gotten a similar letter from Ally? I'm not too concerned as our other scores were all fine. I've just never heard of this company before, and when you read online about them, it's all very similar. Scores that are even farther apart than ours were.

 

Very interesting and almost shady, and depending on what you may be financing, if the company uses them for your score/report, it could make for an interesting time even if you have perfect credit.

 

Just very curious what others experiences have been...

 

 

 

 

 

Sent from my SM-G965U1 using Tapatalk

 

 

 

Just to make a few comments.    The only shady behavior here was that done by the dealer as they did not explicitly outline who they were submitting applications to in your behalf although the Ally underwriter probably could have made better choices in selecting the reasons to be listed for the denial. 

 

There are a number of different scoring models, some of which use a standard framework (FICO 2/3/4/5/8/8 Bankcard/8 Auto/9/9 Bankcard/9 Auto,Vantage 3.0, Vantage4.0 are all well-known examples) and some of which are proprietary.  Sagestream provides a proprietary score. Chase Bank as an example uses an internal proprietary model.  To give 2 other examples Navy Federal and Pentagon FCUs both used proprietary models until they converted over to using FICO 9 1-2 years ago.

 

You can't directly compare the results from 1 scoring model to another because they look at different criteria and weight them differently.  It's not uncommon to  have a FICO 8 score of 800+ and a FICO2 or FICO5 score in the low 700s,and there are still a number of banks and credit unions that use FICO2 or FICO5 scores to make credit decisions.  It's also not uncommon to have Vantage scores (Credit Karma, WalletHub) that vary more than 50 points from the FICO 8 score from the same credit reporting agency (Experian/Transunion/Equifax).   Having a FICO 8 score of 840 and a SageStream score in the 700s is no indication whatsoever of any incompetence or dishonesty on their part but they do show you have a clean profile. 
 

Other well-known creditors like US Bank and Ban of America also pull  from Sagestream as a secondary source.

 

Ally is legally obligated to give you between 1-4 items from a formal list of about 80 that telling you what most influenced the decision to deny you credit.   What you got may not have been the actual reason or even reflect reality in your case but may have been the best fit from those options available to choose from.

 

BTW a phone # with different area code than what a landline at that address would get is a risk factor for potential fraud.  As is true in your case it can be a BS reason but the phone #  it's accurate Ally can select it.

 

You should request in writing via registered mail a free  copy of your Experian and Sagestream reports although with FICO 8 scores in the 840 range both you and your wife are going to have clean files. 

 

This also speaks to why it's not a bad idea to line up financing before visiting the dealers, while for scoring purposes multiple inquiries from the same CRA will be treated as a single hard pull they are all still individually reported and current creditors will see each one of them  It's not unheard of to have a dealer send out applications to 10-12 different banks/credit unions. 

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