The Credit Specialists

The Credit Specialists We specialize in full spectrum credit financing. Over 45 years experience, help people with all types of credit situations

06/17/2022

We help good customers with all types of credit issues get into new or pre-owned vehicles. Contact me directly for information and how we can help
Gary Dirstine 623-203-6067
[email protected]

What's in my FICO® Scores?FICO Scores are calculated using many different pieces of credit data in your credit report. T...
06/17/2022

What's in my FICO® Scores?
FICO Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).


Your FICO Scores consider both positive and negative information in your credit report. The percentages in the chart reflect how important each of the categories is in determining how your FICO Scores are calculated. The importance of these categories may vary from one person to another—we'll cover that in the next section.
The importance of credit categories varies by person
Your FICO Scores are unique, just like you. They are calculated based on the five categories referenced above, but for some people, the importance of these categories can be different. For example, scores for people who have not been using credit long will be calculated differently than those with a longer credit history.
In addition, as the information in your credit report changes, so does the evaluation of these factors in determining your FICO Scores.
Your credit report and FICO Scores evolve frequently. Because of this, it's not possible to measure the exact impact of a single factor in how your FICO Score is calculated without looking at your entire report. Even the levels of importance shown in the FICO Scores chart above are for the general population and may be different for different credit profiles.
Your FICO Scores only look at information in your credit report
Your FICO Score is calculated only from the information in your credit report. However, lenders may look at many things when making a credit decision, such as your income, how long you have worked at your current job, and the kind of credit you are requesting.
• What do FICO Scores ignore?
• What's in my credit report?
What categories are considered when calculating my FICO Score?
Payment history (35%)
The first thing any lender wants to know is whether you've paid past credit accounts on time. This helps a lender figure out the amount of risk it will take on when extending credit. This is the most important factor in a FICO Score.
Learn more about payment history
Amounts owed (30%)
Having credit accounts and owing money on them does not necessarily mean you are a high-risk borrower with a low FICO Score. However, if you are using a lot of your available credit, this may indicate that you are overextended—and banks can interpret this to mean that you are at a higher risk of defaulting.
Learn more about amounts owed
Length of credit history (15%)
In general, having a longer credit history is positive for your FICO Scores, but is not required for a good credit score.
Your FICO Scores take into account:
• How long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts
• How long specific credit accounts have been established
• How long it has been since you used certain accounts
Learn more about length of credit history
Credit mix (10%)
FICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Don't worry, it's not necessary to have one of each.
Learn more about credit mix
New credit (10%)
Research shows that opening several credit accounts in a short amount of time represents a greater risk—especially for people who don't have a long credit history.
Source-myfico.com

06/15/2022

What's the difference between FICO® Scores and non-FICO credit scores?
Not all credit scores are FICO Scores. For over 25 years, FICO Scores have been the industry standard for determining a person's credit risk. Today, more than 90% of top lenders use FICO Scores to make faster, fairer, and more accurate lending decisions. Other credit scores can be very different from FICO Scores—sometimes by as much as 100 points!
When it comes to FICO Scores versus other credit scores, the answer is "quite a lot. "FICO Scores are used by 90% of top lenders to make decisions about credit approvals, terms, and interest rates. Chances are when you apply for a mortgage, an auto loan, credit card, or a new line of credit, the bank or lender is looking at your FICO Score.
The reason? Lenders know what they are getting when they review a FICO Score. FICO Scores are trusted to be a fair and reliable measure of whether a person will pay back their loan on time. By consistently using FICO Scores, lenders take on less risk, and you get faster and fairer access to the credit you need and can manage.
FICO Scores use unique algorithms to calculate your credit risk based on the information contained in your credit reports. While many other companies design their credit scores to look like a FICO Score, the mathematical formulas they use can vary greatly.
Unfortunately, the methods used by these other companies can lead to credit scores that are very different from your FICO Score.

05/25/2022

Credit Checks: What are credit inquiries and how do they affect your FICO® Score?
When you apply for credit, you authorize those lenders to ask or "inquire" for a copy of your credit report from a credit bureau. When you later check your credit report, you may notice that their credit inquiries are listed. The only inquiries that count toward your FICO Scores are the ones that result from your applications for new credit.
It's important to know that there are 2 types of credit inquiries. Soft inquiries will not affect your FICO Score. Hard inquiries will affect your score.
Examples of hard inquiries:
• You go car shopping and apply for financing at the car dealership and they pull a credit report on you.
• You contact your credit card company and request a credit line increase. The company pulls a fresh credit report on you to help determine if they will grant the line increase.
Examples of soft inquiries:
• Your bank gets an updated FICO Score on all its customers to check the credit quality of its customer base.
• You got a new job and your employer pulled your credit report as part of its new employee screening process.
Do credit inquiries affect my FICO Score?
FICO's research shows that opening several credit accounts in a short period of time represents greater credit risk. When the information on your credit report indicates that you have been applying for multiple new credit lines in a short period of time (as opposed to rate shopping for a single loan, which is handled differently as discussed below), your FICO Scores can be lower as a result. Although FICO Scores only consider inquiries from the last 12 months, inquiries remain on your credit report for two years.
If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most Credit Scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time.
Typically, these are treated as a single inquiry and will have little impact on your credit scores.
What to know about rate shopping
FICO Scores are more predictive when they treat loans that commonly involve rate-shopping, such as mortgage, auto and student loans, in a different way. For these types of loans, FICO Scores ignore inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won't affect your scores while you're rate shopping.
In addition, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. If your FICO Scores find some, your scores will consider inquiries that fall in a typical shopping period as just one inquiry. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14-day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45-day span. Each lender chooses which version of the FICO scoring formula it wants the credit reporting agency to use to calculate your FICO Scores.
As a general rule, it is OK to apply for credit when needed. Be mindful of this information so you can start the credit-seeking process with more confidence.
(source-myfico.com)

05/25/2022

Consumer Credit Auto Financing & FICO Scores
“Do I qualify for auto loan financing with a low or No FICO Score?”
(That has become a relevant Question!)

In my opinion, our automotive retail sales environment has become much too FICO Score reactive at the dealer Sales management level!
In other words, more times than not a sales manager at a dealership may view a low or no FICO Credit Score as someone they cannot help or care to provide financing for due to additional lender fees and requirements. Additionally, the consumer may have already been mistreated by one or more other dealership(s) that were not knowledgeable or even equipped to handle low or no FICO Score (Subprime) consumers. This can cause a consumer to believe they may not qualify for any auto financing options. This is a common occurrence that happens daily in many of the dealerships across the country.
The truth is that as FICO Scores cascade down from Super Prime (>780) to Prime (>700) to Near Prime (640-699) to Sub-prime (520-640) to High Risk (

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