Finance Department
Phone: (716)648-4141
Fax: (716)646-6812
Monday - Tuesday, Thursday
9:00 AM - 9:00 PM
Wednesday, Friday
9:00 AM - 6:00 PM
Saturday
9:00 AM - 5:00 PM
Sunday
Closed
Finance Department
Credit 101
At Toyota Financial Services and West-Herr Scion of Orchard Park, we believe that getting behind the wheel of a new Scion should be a simple and straightforward experience. That's why we want to provide you with the info you need to make a decision that works best for you.
"Credit 101" is a source for information about the basics of credit, tips for maintaining strong credit, and the lowdown on vehicle financing and leasing. We've also compiled some commonly used terms in our glossary to help you translate credit-speak.
So whether you're obtaining credit for the first time, or looking for a quick refresher course, take some time to learn about the basics of credit, and how to make it work for you.
Credit Tips
Maintaining good credit is important. Here are some tips for building and maintaining a strong credit history.
Pay Your Bills on Time
Make your payment well before the due date to avoid late fees and the accrual of additional finance charges or other charges owed when you pay after your payment due date. This is the best way to be considered a "good credit risk" by future lenders.
Be Proactive
Take an active approach to understanding and managing your credit. Educate yourself about the importance of credit by reading appropriate publications and visiting applicable Internet sites. Take the time to know what is on your credit report and check for inaccurate, incomplete or outdated information. Report errors promptly to all credit agencies. Under law, the credit reporting agencies and your creditor must investigate your complaint and correct or remove any information that isn't accurate.
Use Credit Wisely
Keep track of your spending and outstanding debt. Set a budget and work to pay off your credit card revolving debt within a reasonable amount of time.
Immediately Inform Your Creditors of an Address Change
Notify your creditors when you move, so you can receive and pay bills on time
Your Credit History
Developing a positive credit history is one of the most important personal financial steps you can take. Read on to learn more about the role of credit reports and credit scores in the credit application process.
What is a credit report?
A credit report reflects the status of your credit accounts as reported by your creditors to credit reporting agencies. It also includes relevant public records (such as bankruptcies) and inquiries made to your credit history. Its main purpose is to help creditors to quickly and objectively decide whether to grant you credit.
The majority of credit reports are maintained and supplied by the nation's three major credit reporting agencies: Equifax, Experian and Trans Union. These companies receive information about you and your history from public records, your creditors, and other sources.
What is a credit score?
An important part of service provided by a credit reporting agency is the generation of your credit score based on the information contained in your credit report. A credit score is a number that provides creditors with a quick way of judging your credit worthiness. Credit reporting agencies calculate your credit score based on a scoring system devised by Fair, Isaac, and Company, Inc., most commonly referred to as the FICO ® score. However, most large creditors use the credit reporting agency score in addition to their own internal scoring system in order to evaluate your eligibility for credit. Credit reporting agencies use a mathematical equation that evaluates many types of information that are on your credit report to calculate your score. (You may find that each reporting agency generates a different credit score for you. This is because the information contained in your credit report varies from agency to agency, causing the score reported by each of the agencies to differ.) By comparing the information in your credit report to the patterns in hundreds of thousands of past credit reports, the score seeks to identify your level of future credit risk. FICO scores range from 300 to 850. The higher the score, the lower the predicted credit risk for creditors.
It's important to note that the credit reporting agencies themselves don't approve or deny your credit. They report on your background objectively, providing the data that's then used by creditors to make credit decisions. Each creditor has its own eligibility requirements and can use these tools, and/or their own internal scoring tools, to set up their own approval and pricing structure.
What factors contribute to your credit score?
According to Fair, Isaac and Company (FICO), the institution which provides the mathematical formula that all three major credit reporting agencies use to determine your score, the factors that contribute to your FICO credit score may include:
- Past payment history (has the applicant paid past credit accounts in a timely manner?)
- Amounts owed (how much of the applicant's available credit is being utilized?)
- Length of credit history (how established is the applicant's credit history?)
- New credit and credit inquiries (has the applicant recently taken on more debt?)
- Types of credit established (does the applicant have a healthy mix of credit?)
Visit call or e-mail West-Herr Scion for more information on geting your loan.
