Friday, August 1, 2014

Tools for Helping Consumers with Their Credit Scores

Posted by JJ Hornblass on Jul 30, 2014 in Operations, Sales & Marketing | 0 comments

A borrower’s deal often boils down to her credit score. This matters because lender marketing often hinges on that score, too.
There’s an opportunity for auto lenders to be a more valuable resource to consumers who are seeking to better understand their credit scores and borrowing potential, even though few lenders think about credit score services as a marketing opportunity. VantageScore, the credit scoring company, recently offered a roster of credit score tools for consumers that lenders can use or share with prospective borrowers. Here’s a rundown:

There are a variety of websites giving away free VantageScore credit scores, including Credit.com, CreditKarma.com, and Quizzle.com. Companies like Mint.com and CreditSesame.com are also giving away commercially available credit scores, such as the Experian National Risk Score and the Equifax Risk Score. A variety of credit card issuers are additionally giving away credit scores. These links can be shared with consumers.
For those consumers that are mystified by credit scores, there are several free resources chock-full of reliable information about how they’re calculated and why they matter. Reasoncode.org contains a list of factors that impact credit scores, as well as strategies to improve scores. The Credit Score Quiz lets consumers test their knowledge about credit scores, and YourVantageScore.com can help bust some of the common scoring myths.
Thanks to the Fair Credit Reporting Act, every consumer has the right to claim a free copy of all of his credit reports once every 12 months from the website www.annualcreditreport.com. Again, lenders can generate marketing goodwill by directing consumers to this link, too.

Tuesday, July 15, 2014

Car Sales Climb, But Will That Continue in a ‘Soft’ Economy

Car Sales Climb, But Will That Continue in a ‘Soft’ Economy?

JULY 11, 2014BY LARISSA PADDEN

Will strong car sales continue?

If this question doesn't keep you up at night, you’re not a true auto finance professional. In a way this is the only question that matters.

The dilemma is this: Yesterday, George Storch, the former Toys “R” Us Inc. chief executive, told CNBC that despite what we might have heard, the economy is in poor shape.

“There’s no doubt the economy is soft,” Storch told CNBC. “I’ve been saying this consistently. The other thing was a silly, silly waste of time: the weather discussion during the first quarter. Go back, the weather is a ridiculous argument that hid the fact that it was weak in the first quarter, too. It’s been weak the whole time. It never got strong. It was weak over Christmas. Weak in the first quarter. Employment picture, taxes, concern over healthcare. It’s not a robust time.”

We are not sure we have heard a stronger, more-succinct condemnation of the economy in recent weeks.

Yet, car sales during the period Storch references have been strong, as evidenced by the car sales numbers this week. Chrysler celebrated sales growth for the 51st straight month. General Motors posted a rise in sales last quarter, despite heavy recalls. How does Storch’s opinion on the overall economy reconcile with the auto industry’s performance?

Two points to consider: 1) The Department of Transportation recently reported that vehicle miles driven rose 1.8% in April as compared with the year-prior period; and 2) IHS Automotive reported in June that cars on the road are on average 11.4 years old, a record. Older cars, driving more miles, could — or maybe should — equal more vehicle sales in the near future.