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Bad credit auto loan customers in particular will benefit from new disclosure notices as reported in a press release from FICO

We know bad credit auto loans

Here at Auto Credit Express we’ve been helping credit-challenged car buyers establish their car credit for over two decades.

During that time, we’ve personally worked with hundreds of buyers at the retail level obtain a bad credit car loan while helping them avoid a tote the note dealer (buyers outside our retail area can now fill out a bad credit auto loan application on our web site) as well as counseled them on the best way to use a bad credit auto loan (buyers who don’t sometimes even end up in repossession).

But in the past if you were turned down and received a notice to that effect, it was often difficult to determine the FICO score that led to that rejection. But with a new regulation that took affect at the beginning of this year, that is about to change.

Regulation changes

Earlier today, we received a press release from FICO. This is what it had to say:

The Fair Credit Reporting Act’s risk-based pricing rule, issued by the Federal Reserve and the Federal Trade Commission, took effect last January 1. Under the rule, lenders have two compliance options in providing disclosure notices to consumers who have applied for credit: send a Risk-Based Pricing (RBP) notice to consumers who get credit but didn’t receive the most favorable terms or, alternatively, send a Credit Score Disclosure (CSD) notice to all applicants. Here is a summary of each notice:

The RBP notice includes information on where consumers can get their credit report and review it for accuracy.

The CSD notice includes the credit score used by the lender to make the decision. Since the vast majority of lenders use FICO® Scores, most consumers receiving this notice will get a FICO Score.

We estimate that roughly 1 billion credit applications will be processed in 2011, and 500 million consumers will receive notices from their lenders because of these new rules. Many of these notices will include credit score disclosures. The result will undoubtedly be an increase in consumer awareness and interest in credit scores.

ScoreInfo.org

FICO’s response was to launch a new website, ScoreInfo.org. According to FICO, “ScoreInfo.org is designed to inform consumers who receive RBP or CSD disclosures, as well as those who receive Adverse Action notices when denied credit. The site provides information to help consumers understand these communications, the credit information evaluated by lenders, and how to take control of their financial health.

How we can help

If you do get turned down for a traditional auto loan, Auto Credit Express is here to help you. For over 20 years, we have helped thousands of people with bad credit buy cars and reestablish their car credit through a nationwide network of affiliate dealers that specialize in second chance auto loans.

So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.

Posted on April 7, 2011 by in Auto Loans, Bad Credit, FICO score
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