During the signing of an Executive Order the President noted the importance of checking your FICO scores on a regular basis
Here at Auto Credit Express we continue to educate borrowers with bad credit on the importance of checking their FICO scores well before beginning the application process. That's because even though high-risk lenders look for reasons to approve borrowers, rather than turn them down, even their loan decisions are at least partially based on credit scores.
Last week during the signing of an Executive Order, the Chief Executive himself noted the importance of knowing your credit scores.
According to FICO, "he recognized the importance of consumers checking their FICO Scores regularly. Not only can doing so help consumers manage their financial health, it can help people protect themselves from financial crime."
The President explained that "a sudden drop in your credit rating is one of the clearest signs that you've been hit by fraud." The President also went on to congratulate Citi on being the latest bank to join FICO Score Open Access by stating "Citi is joining other financial institutions in making free FICO Scores available to customers."
FICO Score Open Access
Launched in November 2013, the financial institutions participating in FICO Score Open Access offer free FICO scores to eight million eligible credit card holders. According to FICO, by early next year the number of consumers that will quality to receive a score should exceed 60 million, covering not only credit card holders, but those with eligible deposit accounts, student loans, and of importance to our customers, auto loans.
The program also allows financial institutions to offer account holders the same credit scores those lenders are using to manage their accounts. Furthermore, the availability of credit scores is more than just another perk. According to FICO, "Analysis of some data from the first year of the program indicates that consumers who take advantage of the program tend to have lower delinquency rates than similar consumers who do not.
What This Means to Consumers with Problem Credit
Since one of the biggest hurdles for many borrowers is the cost of finding out their credit scores, as this program expands it could prove to be of great benefit to these consumers – especially if their credit is currently less than perfect.
The Bottom Line
To begin with, knowing your credit scores is important. If you doubt that's true, just ask the President. Secondly, the FICO Score Open Access program, once it becomes more widely available, could certainly help all consumers – even those with poor credit, as this would allow borrowers to see the same credit score that lenders use to manage their accounts.
One more thing that can help borrowers with credit issues: at Auto Credit Express our specialty is helping applicants with problem credit find those car dealers that can give them their best opportunities for approved car loans.
So if you're ready to reestablish your car credit, you can begin now by filling out our online auto loan application.