WFDS stands for Wells Fargo Dealer Services, which is related to auto loans offered through Wells Fargo.
Finding this on your report usually indicates that you’ve taken out or co-signed an auto loan with them. If this doesn’t sound familiar, it could be a mistake or even a sign of identity theft.
In this article, we’ll break down what WFDS means, how it affects your credit, and guide you on the steps to take if you need to remove it. Whether it’s a legitimate entry or an error that needs fixing, we’ll help you navigate the process to ensure your credit report is accurate and reflects your true financial situation.
What Does WFDS Stand For
WFDS stands for Wells Fargo Dealer Services, which is the part of Wells Fargo that helps finance auto loans through a network of nearly 11,000 dealerships nationwide. They also work with these dealerships to pre-qualify customers for car loans.
If you spot WFDS on your credit report, it likely means you applied for an auto loan with Wells Fargo, cosigned for one, or received their auto loan services. This notation will appear on your credit report whether or not you ended up getting the loan from Wells Fargo.
What is WFDS on a Credit Report
There are different reasons why WFDS shows on your credit report, and we hope it’s not the number three reason:
- Your auto loan was provided by Wells Fargo Dealer Services. If you recently applied for an auto loan, it might have been processed through Wells Fargo, which is why it’s showing up on your credit report. Even if your loan application was denied, the credit check would still leave a hard inquiry on your report.
- You cosigned an auto loan for a family member with Wells Fargo. If you agreed to cosign an auto loan for a family member, it could have been issued by Wells Fargo Dealer Services, and that’s why it appears on your credit report. Cosigning a loan means that the account will show up on both your credit reports.
- It might be an error or identity theft. If neither of the above situations applies to you, then you might be dealing with an error on your credit report or possibly identity theft. Either way, you should take steps to fix it to protect your credit.
How to Remove WFDS From Your Credit Report
Here are the steps to remove WFDS from your credit report if you believe that there is some inaccuracy or error:
- Call Wells Fargo 1-800-289-8004
- Request information to understand what records they have indicating your involvement or past involvement with their auto loan services
- Ask them what are the steps to remove WFDS from your credit report if you believe you are a victim of fraud
If you believe that you’re a victim of identity theft, be sure to send a dispute to the credit bureaus:
- Experian: https://www.experian.com/disputes/main.html
- Equifax: https://www.equifax.com/personal/credit-report-services/credit-dispute/
- TransUnion: https://www.transunion.com/credit-disputes/dispute-your-credit
How to File a Dispute with Equifax
Online
- Go to Equifax Dispute Form
- Create or Log in to your account
- Provide necessary information about the dispute, including details about the fraudulent or incorrect information
- Upload supporting documents like identification, proof of address, and any documentation related to the disputed information if there’s an upload button
- Submit your dispute
By Mail
- Print the Dispute Letter
- Send the letter to:
Equifax Information Services, LLC
P.O. Box 740256
Atlanta, GA 30374-0256
By Phone
- Call Equifax at 1-888-378-4329, available from 9:00 am to 9:00 pm, Monday through Friday, and 9:00 am to 6:00 pm on Saturday and Sunday (ET)
- Provide any information related to your dispute
💡 Note: Most dispute investigations wrap up within 30 days. If you filed your dispute online, you’ll get the results via email.
How WFDS Can Impact Your Credit Score
When you apply for an auto loan with Wells Fargo, they perform a credit check to see if you qualify. This results in a hard inquiry on your credit report, which can temporarily lower your credit score (unlike soft inquiries, which don’t affect your score).
If you miss a payment on a WFDS loan or if the loan is charged off, it can also negatively affect your credit score. Payment history is a significant part of your FICO® score, making up 35%, so missed payments and delinquent accounts have a bigger impact on your score than a single hard inquiry.
Understanding Hard Inquiries and Their Impact
What is a Hard Inquiry?
A hard inquiry, also known as a hard pull, happens when a lender checks your credit report as part of the application process for a loan or credit card. This type of inquiry requires your permission and shows up on your credit report, visible to other lenders as well.
Impact on Your Credit Score
- Temporary Dip: A hard inquiry can drop your credit score by a few points, generally less than five. This dip is temporary, and your score typically recovers within a few months if you maintain good credit habits.
- Multiple Inquiries: When you’re shopping for a mortgage, auto loan, or student loan, multiple inquiries within a short timeframe (usually 14 to 45 days) are treated as a single inquiry by most credit scoring models. This allows you to shop around for the best rates without significantly hurting your credit score.
- Duration: Hard inquiries stay on your credit report for up to two years, but they usually stop affecting your score after one year.
Difference Between Hard and Soft Inquiries
- Hard Inquiries: These occur when you apply for new credit. They can affect your credit score and are visible to other lenders reviewing your report.
- Soft Inquiries: These happen when you check your own credit or when a lender checks your credit for pre-approval offers. They do not affect your credit score and are not visible to other lenders.
Does Wells Fargo Report Auto Loans to Credit Bureaus?
Yes, Wells Fargo reports auto loans to the major credit bureaus. When you take out an auto loan with Wells Fargo Dealer Services, your loan activity, including your payment history and the status of your account, is reported to credit bureaus such as Equifax, Experian, and TransUnion.
This means that timely payments can help build your credit, while missed or late payments can negatively impact your credit score.
To ensure you never miss a payment and maintain a healthy credit score, try tools like Cushion. Build your credit effortlessly with Cushion’s virtual debit card. By paying bills such as subscriptions, utilities, and even Buy Now Pay Later payments through Cushion, you can improve your credit score.
What is the Current Interest Rate for a Car Loan with Wells Fargo?
Interest rates for Wells Fargo auto loans can start as low as 3.99% for highly qualified borrowers. Wells Fargo no longer offers auto loans directly to consumers. Instead, they provide auto financing through a network of over 11,000 partner dealerships across the United States. This means that the interest rates for Wells Fargo auto loans can vary depending on the dealership and the specific terms they offer.
Since the rates can vary by dealership, it’s best to discuss the specifics directly with the dealer when you are purchasing a vehicle. They will provide the exact terms and rates available based on your financial profile and the car you choose.
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Summary
If you’ve seen “WFDS” on your credit report, it’s likely due to an auto loan or co-signed loan with Wells Fargo Dealer Services. This could be a sign of a legitimate loan or, if unfamiliar, possibly an error or fraud. WFDS entries appear because Wells Fargo Dealer Services finances auto loans through a network of dealerships.
To remove WFDS from your credit report, first, contact Wells Fargo at 1-800-289-8004 to verify your involvement. If it’s an error, dispute it with the credit bureaus.
You can file your Equifax disputes online through the Equifax Dispute Form, by mail to Equifax Information Services (P.O. Box 740256, Atlanta, GA 30374-0256), or by phone at 1-888-378-4329.
Keeping your credit report accurate is essential for maintaining your financial health and credit score.
