Car shoppers with questionable credit need to familiarize themselves with the information that is not used when computing FICO scores and therefore not considered when they apply for an auto loan
What we know
Here at Auto Credit Express we’ve spent the last twenty years helping car shoppers with problem credit scores looking for online auto loans find those new car dealers that can offer them their best opportunities for an auto loan approval. During this time we’ve rarely had to explain what isn’t involved in computing credit scores.
We believe this is understandable because most people that have experienced problem credit and are applying for a car loan are more concerned with raising their FICO scores as well as what causes them to rise and fall. The result is that we typically find ourselves explaining to these applicants how they can begin repairing their credit – with suggestions ranging from paying their bills on time to keeping any credit card balances below 30% of their credit limits.
But it’s also true that consumers with bad credit who want to know the best way to buy a car with poor credit should also know which facts are not considered, at least by FICO, when a credit score is computed.
According to FICO, the following things are not considered:
• Your race, color, religion, national origin, sex and marital status.
• US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.
• Your age.
• Other types of scores may consider your age, but FICO scores don’t.
• Your salary, occupation, title, employer, date employed or employment history. Lenders may consider this information, however, as may other types of scores.
• Where you live.
• Any interest rate being charged on a particular credit card or other account.
• Any items reported as child/family support obligations or rental agreements.
• Certain types of inquiries (requests for your credit report).
The score does not count “consumer-initiated” inquiries – requests you have made for your credit report, in order to check it. It also does not count “promotional inquiries” – requests made by lenders in order to make you a “pre-approved” credit offer – or “administrative inquiries” – requests made by lenders to review your account with them. Requests that are marked as coming from employers are not counted either. Also:
• Any information not found in your credit report.
• Any information that is not proven to be predictive of future credit performance.
• Whether or not you are participating in a credit counseling of any kind.
The Bottom Line
Although not as important as knowing what will raise of lower their FICO scores, consumers with less than stellar credit should also understand the types of information will not affect their scores.
Another thing that’s good to know: if you’ve experiencing problems getting approved for a car loan and believe your only option is a BHPH dealer, we want you to know that Auto Credit Express specializes in helping applicants with car credit issues find those dealers that can give them their best chances for approved auto loans.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online auto loan application.
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