Thursday, February 21, 2019

How To Read an Automotive Credit Report

CRA blog readers,

It has been my pleasure for many years publishing and writing articles for this blog. I found this article interesting because it was originally published in F&I Magazine, an automotive industry trade magazine.

F&I stands for Finance & Insurance. An F&I Manager at a dealership is also called the Business Manager. He or she is the individual who submits your application to banks and finance sources to get you approved for financing. This individual will also be the one who you sign paperwork with before taking delivery of your new (or new to you) vehicle.

The interesting thing about this article is that it is meant to be read by the F&I manager - who is supposed to be the credit expert in the dealership. At least that was how it was in the car business 12 years ago as I remember it. Anyway, here is some good information:

Just the Facts
A customer’s credit report and credit score are a reflection of data reported by creditors to the three major credit bureaus: Equifax, Experian, and Trans- Union. It can predict how likely it is that a consumer will pay back his or her auto loan, which can help determine the ap­propriate interest rate and whether your captive finance company will buy it. The data is organized in such a way as to iden­tify the consumer and provide a complete picture of their credit acquisition and payment history.
Some dealerships may rely on just one bureau for credit reports. Oth­ers focus only on the score. But scores can vary across reports, and sometimes there is an imbalance. When the scores vary wildly across reports, that most of­ten means at least one of them is lacking key information.
Case in point: Not all lenders report to every credit bureau. Should a con­sumer be turned down because of a lack of, different, or negative information on a given report, the best financing deal is not achieved and lost profits ensue. If you send them home, they are probably not coming back.
 My Auto Loan.com
Credit Report Breakdown
You need a general understanding of what is in a credit report to evaluate each customer’s access to credit in a timely manner. Reports produced by each bu­reau might differ in terms of layout, but each will contain the following pieces of information:
• Subscriber-provided input and in­formation: This is a record of actual con­sumer information that has been entered to locate the file.
• Consumer demographic informa­tion: This section helps verify consumer identity by providing certain information from data furnishers. This may include the consumer’s name, current and previ­ous addresses, Social Security number, date of birth, phone number, and em­ployment history.
• Special messages: This section shows any special credit file conditions and helps with compliance requirements. It highlights differences in surname, ad­dress, or SSN, includes notification of ad­dress discrepancy — which is a require­ment under the Fair Credit Reporting Act — and provides information which may help you comply with the USA Patri­ot Act. High-risk fraud alerts may appear if an address or Social Security number was used in previous suspected fraudu­lent activities, and names can be screened against the U.S. Treasury Department’s OFAC database.
• Model profile: This section is only in­cluded when you subscribe to and receive certain scores or models, such as a FICO score or a VantageScore. Each has its own algorithm and each has multiple versions. Know which version is being used should the consumer have questions.
• Credit summary: An optional com­ponent, it provides a snapshot of the con­sumer’s credit report for either the total file history, or just the last 12 months of activity, illustrating the number of nega­tive accounts from any of the assigned creditors. It also provides a total of dif­ferent trades from revolving credit, in­stallment loan accounts, and number of inquiries.
• Auto summary: This section dis­plays activity relevant to vehicles the consumer has financed, features five of most recent auto trades (both open and closed), an estimate of APR for each auto loan, and total revolving credit calcula­tion. You will also find a summary of payment, balance, months remaining, and delinquencies on auto loans, the highest amount ever owed on an account, the maximum credit approved by the grantor, the balance owed as of the date verified, any past due amounts, the sub­scriber-reported monthly payment, and the percent of credit available for each account.
• Collections: Here you will find any accounts placed with a debt collection firm along with corresponding dates.
• Trades: This section covers buying and payment activities. It shows a number of codes for type of business and the col­lateral. It shows the highest amount ever owed by the consumer and the current balance owed. “Terms” show payments, frequency, and any past due amounts. Should delinquency occur, it will list the date. “Payment history” shows up to 24 months of credit account statuses, including any past due and missed pay­ments, which stay on most reports for about seven years. Trade information also includes the abbreviated name of the credit grantor or data furnisher with whom a consumer has an account.
• Credit inquiries: This is a list of all the banks, credit unions, auto dealers, mortgage companies, and other would-be creditors that have pulled the consum­er’s credit file over the past 24 months.
• Consumer statement: A statement to protect consumers against fraud may be included.
Pertinent Tips
Dealers should be working with credit bureaus to help consumers and provide a seamless experience, and this starts with dealer education. Fraud prevention should also be addressed with solutions that F&I managers can incorporate into their workflows, such as better manag­ing the “Red Flag” alerts that will come up when a potential higher risk of fraud is presented. There can be added stipula­tions in the consumer verification pro­cess, such as income verification and ad­dress mismatch.
Overall, a person’s credit scores can vary by as much as 50 points between different bureaus due to the different in­formation reported to each bureau and the data used to calculate each bureau’s scores. For example, two of the three bureaus may place a consumer in the “prime” tier while the third may have that same consumer several tiers down, leav­ing them with less attractive financing offers. Factors such as old data or report­ing errors could adversely impact a credit score at one bureau compared to another.
Armed with a better understanding of the consumer credit report, F&I man­agers can get the most out of the lending process for their buyers, deepen their re­lationships by building their credibility with accurate information and meet auto lending compliance requirements.
Read Original Article by Brian Landau in F&I Magazine HERE



Visit the Credit Restoration Associates Website: https://creditra.com

https://www.crafranchise.com/

Credit Repair Franchise Opportunity: https://www.crafranchise.com

CRA Resources:
Credit Repair:
About CRA:




Thursday, January 17, 2019

Credit Repair Promotion 2019 for Liberty Tax Franchisees - NOW is the time


Hello Liberty Tax Franchisees and Store Managers,

Today is the 17th of January, and if you have not told your preparers to refer clients to us for credit repair, call the CRA office ASAP to schedule us to do a training session for your team. 804-823-9601. Plan on a day when everyone can be present to participate in the training. 

You are about to start getting very busy and you are Going to have an excellent 2019 tax season!!  

And as you know, referring clients to us for credit repair is a VERY lucrative "additional income" for you. View the 2019 promotion video by clicking below:  vvvvvvvvvvvvv

 Liberty Tax 2019 Credit Repair Affiliate Promotion













See our updated "Zee Net" page on the Liberty Tax Corporate resources site for talking points for credit repair services in your stores. "Financing", then "Outside Financing", then "Credit Restoration Associates" for all program details and guidelines.


You will make $50.00 per referral, X 100's of referrals this tax season!!! It will help you to make payroll.. utilities.. Liberty franchise fees.. whatever you need. 


Call Credit Restoration Associates for more information: 804-823-9601 x101

Are you interested in opening a satelite credit repair office in your Liberty Tax store(s)? Are you intersted in investing in a credit repair business opportunity? Visit our credit repair franchise page: https://www.crafranchise.com/ for additional information and special offers to get started.

Credit Repair Franchise Business Opportunity Videos below:
Credit Repair Franchise Business Opportunity:


 Credit Repair Franchise Business Opportunity














 Shawn Womack Franchise Director Credit Repair Franchise Program and Business Opportunity





NOW is the time to invest in the future of your company. 

Robert Linkonis, our company President, and his company, Credit Restoration Associates, has physically attended each of the last 7 (seven) Liberty Tax conventions in Virginia Beach VA. We have had a full "Vendor Booth" in the exhibit hall of each convention  

You have most likely met Robert if you attended any of the Liberty Tax Conventions, or participated in his seminars on personal credit or business credit in the last seven years.

From Robert:
"I cannot remember exactly how many of you approached us at our vendor booth at the last 7 (seven) Liberty Tax Conventions in Chesapeake, Virginia Beach asking to buy into our franchise model. I have met thousands of you in the "breakout" sessions after each of my presentations to talk about fixing personal credit and building business credit...

So......

Now is the time!

Call NOW to get started with the referral program (discounts for your family and your employees!) and Call NOW to schedule a conversation about becoming a full partner. (804) 823-9601.

https://www.crafranchise.com/

Visit the Credit Restoration Associates Website: https://creditra.com

Credit Repair Franchise Opportunity: https://www.crafranchise.com

CRA Resources:
Credit Repair:
About CRA: