What FICO Does Not Consider

Car shoppers with poor car credit should also know the consumer information that is not considered when computing FICO scores

Our take

Here at Auto Credit Express, where we’ve spent the last two decades helping car buyers with low credit scores find dealers for their best opportunity for auto loan approvals, we very rarely have to explain what”s not involved in computing certain credit scores.

This is understandable, because most people with credit problems are more concerned with credit repair and the issue of what causes their FICO scores to rise and fall. As a result, we constantly find ourselves explaining to applicants how they can improve their credit scores. These suggestions range from paying all bills on time to keeping those credit card balances below 30%.

But the fact is, car shoppers with bad credit should also know those facts that are not considered, at least by FICO, when they compute a credit score.

FICO score computation

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.

•    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.

As we see it

Although not as important as knowing what will raise of lower credit scores, people with less than perfect credit should also understand what information will not affect their FICO scores.

Something else you should know if you”re experiencing problems getting approved for a car loan: if you think that your only option is a “buy here pay here” dealer let us explain the benefits of getting financed through one of our dealers. That”s because Auto Credit Express specializes in helping applicants with damaged credit find the right new car dealerships for their best opportunity at car loan approvals.

So if you’re ready to reestablish your car credit, you can begin now by filling out our online car loans application.