Consumers with problem credit should also know what information is not considered when computing the credit scores than can affect their auto loan application.
What we know
Here at Auto Credit Express we’ve spent over twenty years helping car buyers with bad credit searching for online car loans find those dealers that can offer them their best opportunities for an approval. We also rarely have to explain what isn’t involved in computing credit scores.
This is understandable because most people encountering credit problems are more concerned with credit repair and those actions that will cause their FICO scores to rise and fall. As a result, we usually end up showing car buyers with questionable credit how they can improve their credit scores – with suggestions ranging from paying all their bills on time and applying for an auto loan with us to keeping credit card balances below 30% of their credit limits.
But the fact remains that credit-challenged consumers should also know what items are not considered, at least by FICO, when a credit score is computed.
Computing FICO scores
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.
The scoring system also doesn’t consider:
• 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 it’s not as critical as knowing those factors that will cause your scores to rise or drop, it’s also important to understand what information will not affect those credit scores from FICO.
Something else that’s good to know: if you’re car loan shopping and experiencing problems getting approved and you believe your only option is a BHPH car dealer, we want you to know that Auto Credit Express matches applicants that have experienced car credit difficulties with new car dealers that can give them their best chances at approved car loans.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online car loan application.
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