Have questions about WFDS after finding the name on your credit report? We’ve got answers.
WFDS is short for Wells Fargo Dealer Services. It’s likely on your report because you applied for a car loan through Wells Fargo.
Auto loan applications can lead to hard inquiries on your credit report, which may impact your score slightly.
WFDS On My Credit Report
WFDS may be an unfamiliar name, but the company it represents isn’t.
One of the nation’s premier financial institutions, Wells Fargo has over 70 million customers.
The bank provides banking, investing, and lending to consumers nationwide, including auto financing through Wells Fargo Dealer Services.
When you apply for an auto loan, even if you end up choosing a different lender’s offer, your credit report will undergo a hard inquiry.
If you applied for an auto loan or opened an account prior to 2008, your report could feature an entry from WFDS/WDS, with the “WDS” referring to Wachovia Dealer Services.
Below, we’ll go into more detail about what a hard inquiry entails.
If you are overwhelmed by dealing with negative entries on your credit report,
we suggest you ask a professional credit repair company for help.
How Does a WFDS Hard Inquiry Affect Your Credit Report?
Hard inquiries can impact your credit score in a few different ways.
Whenever you apply for a loan, line of credit, or credit card, the lender or creditor will want to see your credit report to get an idea of how responsibly you’ve used credit in the past.
To do so, they’ll request a copy of your report from one or more of the three major credit bureaus.
Hard inquiries typically lower your score by a couple of points, and they stay on your report for 2 years, max.
Hard credit pulls are a necessary part of getting approved for new credit, and they hardly influence your score.
In other words, prospective lenders won’t penalize you for having a few hard inquiries here and there.
However, applying for cards and loans left and right can suggest that you aren’t the most dependable applicant and lead to a denial.
That’s why you should take a look at the approval requirements for loans and cards before applying to avoid an unnecessary inquiry.
When you’re shopping for a certain type of funding, like an auto loan or a mortgage, you can reduce the impact of hard inquiries by completing all your applications within a 14-day stretch.
It’s also important to understand the difference between hard and soft credit checks.
Soft inquiries happen whenever you access your score with a credit monitoring app, go through a background check, or get pre-approved for an offer.
They don’t actually grant you approval for funding, so they have no bearing on your score.
How to Remove WFDS from Your Credit Report
If WFDS still isn’t ringing a bell because you never applied for one of their auto loans, you may be the subject of a reporting error, or more, unfortunately, identity theft.
If you didn’t apply for a Wells Fargo car loan, you shouldn’t let it go unnoticed.
Here are a couple of ways you can go about getting the hard inquiry deleted from your report.
Dispute the Inquiry with Wells Fargo and the Bureaus
You may want to start the dispute process by going straight to the source: Wells Fargo.
You can call, write, or meet with a representative of the bank to get to the bottom of the inquiry.
In doing so, you might jog your memory, realizing that you did apply for a loan in the past or serve as an authorized user for someone else.
Or you may also pick up on clues that can be helpful in stopping whoever is using your information fraudulently.
Your next step is to contact the credit bureaus that feature the entry from WFDS on their reports.
The Fair Credit Reporting Act requires the bureaus to investigate when you file a dispute regarding an unknown hard inquiry.
If they find the entry to be erroneous, they’ll remove it from your account quickly.
If an identity thief is behind the entry, you can proceed by putting a security freeze on your reports, which is free.
You can also put a fraud alert on your TransUnion report, which will, in turn, notify the other bureaus.
Keep Up with Your Credit
It is essential to keep a close eye on your credit.
That way, if someone swipes your personal information and applies for a loan, you’ll be able to alert the bureaus quickly and stop the culprit from destroying your credit.
Credit monitoring services give you score updates and notifications when entries are added to your report.
They’ll also give you personalized tools for boosting your credit.
Hire a Credit Repair Company
Coming back from identity theft and disputing reporting errors can be an arduous task. Luckily, you don’t have to go it alone.
There are several reputable credit repair companies that can assist you with everything from disputing a simple reporting error to recovering from bankruptcy.
Additionally, they’re equipped to help you if you’re facing:
Many of these companies have different packages to choose from, so you can get just the right level of service.
If you’d like help getting your score back on track, do your research and pick one of the best credit repair companies to get started.
Dealing with WFDS on Your Credit Report
Don’t let an auto loan application get you down.
While a hard inquiry from WFDS may have a negative impact on your score now, it won’t affect your score at all two years from now.
If you suspect that someone may have used your info to apply for a loan without your consent or that there may be an error on your report, you should dispute it.
Whether you choose to take a DIY approach to disputing the inquiry or hire a credit repair company, don’t delay in getting the entry removed.