CREDCO SERVICES FAQs

TECHNICAL SUPPORT

What if I forget my password for the CREDCO Service Center?

Call Technical Support at (866) 694-2241 or Email pwy.TechSupport.asm@fadv.com and we’ll send you your password information. Technical Support is available 5 am – 7 pm PST, Monday through Friday, and 8 am – 4:30 pm PST, Saturday and Sunday.

ENROLLMENT PROCESS

What important items do I need to gather before I begin the enrollment process?

It will be helpful to have the following information before beginning the enrollment process:

• Business Tax ID
• Business Bank Account Information
• 2 Business References that can verify the nature of your business (i.e., auto dealer, boat/marine, etc). For each reference, provide Account number, Name, Phone number, Name of business and Address.
• 1 Credit Reference that can verify a favorable payment history with your company

What required information do I need to provide with my enrollment application?

The following documentation can be faxed:

• Copy of a business bank statement displaying the company’s name and dated within the last 45 days
• Copy of a phone bill displaying the company’s name
• Copy proof of bona fide business, such as a business license or official state/federal document displaying the company name.

I registered for an account but didn’t receive a confirmation email; what should I do?

If you did not receive a confirmation email within 2 hours of completing the enrollment process, please call our Customer Support group at (800) 694-1414 or email auto.credco@fadv.com.

I have forgotten my password; what do I do?

To retrieve your password, go to the “Forget Password?” link at www.credcoservices.com/becomeacustomer/onlinesignup/forgot.aspx

I am not the officer of the company but can I complete the application on someone’s behalf?
(i.e., I’m the Executive Assistant completing the application for my boss)

Yes, you can complete the application on someone’s behalf. Make sure the authorized individual’s information is complete in the Officers section of the Customer Profile.

Is the information I enter secure?

Yes. We use https using SSL (Secured Socket Layer) to protect your information over the Internet. In addition, we use the industry standard encryption technologies to encrypt all the data you have entered.

Can I save my information and come back later to complete?

Yes. You can save your information as you go, so you can return and continue where you left off.

What fields are required to complete?

All required fields are indicated with a red asterisk (*). To expedite the application process, we suggest completing as many fields as possible.

How long does my application remain active in the system?

Your application will be available for 30 days after you create your user name and password. After 30 days, the application will become inactive and you will need to start from the beginning.

Are the products I select on the “Products & Services Page” the same products I will receive?

By selecting the products, you are only notating which products or services that you are interested in using. At the end of the enrollment process, a First Advantage CREDCO representative will contact you to discuss your product choices. If you are unsure of what products are best for you, you can discuss and choose the products when you speak to a representative.

Can I conduct a price comparison on this site?

No. Prices are not displayed on the website. You will have the opportunity to discuss pricing and other account questions when a First Advantage CREDCO representative contacts you.

Can I email a scanned copy of the bank statement and business license?

No. Email is not a secured medium of exchanging information. For your privacy, we do not support receiving any personal information like business license, bank statements and/or phone bills via email. Please fax all your supporting documents. Be sure to include the Reference # in the subject/comment on cover sheet.

Can I re-access or print my application, the compliance packets and other documents?

Yes. The application will be available to you for 30 days.

Who can I contact for help?

If you have any questions about our the signup process, please call (800) 694-1414 or email auto.credco@fadv.com and a First Advantage CREDCO representative will be happy to assist you.

CREDIT REPORTS

What are FICO scores?

Fair Isaac Corporation is the creator of Fair Isaac Scores (also called FICO® scores). FICO scores rank order potential borrowers based on the likelihood that they will pay their credit obligations as agreed. A higher score indicates better credit quality. The scoring range is approximately 300 to 850 points.

There are two kinds of Fair Isaac scores used in the auto industry. The original Fair Isaac score is the Standard or Generic score. The other version is the Auto Industry Specific score. Each of the three national credit bureaus (Equifax®, Experian® and TransUnion) use these scores; however, they have been given different names as follows:

 

Standard/Generic	Auto Industry Specific
Equifax Beacon 09	Equifax Beacon 09 Auto
Experian FICO Classic 08	Experian FICO Classic 08 Auto
TransUnion FICO Risk Score Classic 08	TransUnion FICO Risk Score Classic Auto 08
Equifax Beacon 5.0	Equifax Beacon 5.0 Auto
Experian FICO II	Experian FICO II Auto
Experian FICO III	Experian FICO III Auto
TransUnion FICO Classic 04	TransUnion FICO Classic Auto 04

 

Auto Industry Specific scores are evaluated differently than the Standard scores. Typically, Auto Industry Specific scores vary from the Standard scores anywhere from 0–50 points (higher or lower) depending on the evaluated credit data within each consumer’s credit report.

All scoring is lender driven. Many lenders are now offering pre-approval programs based upon certain scoring ‘tiers’ (along with other requirements, in many cases). For example: a report displaying a Fair Isaac Standard score of 680 or higher will be automatically approved by lender A, whereas lender B will automatically approve a report displaying a Fair Isaac Auto score of 720. Consequently, some lenders use the Standard scores and some use the Auto scores.

What is the major difference with the new FICO 08 score?

FICO states that the new FICO 08 score can provide a 5 – 15% improvement in consumer segmentation; which can generate revenues and decrease losses.

Is the FICO 08 only Auto or both Standard and Auto?

The FICO 08 scores have been developed for standard (non-industry specific) risk assessment and with specific industries in mind. CREDCO supports both the Standard and Automotive version.

What is the difference between the Standard (non-industry specific) and the Auto-Specific Loan Model?

The version for the Automotive Industry is designed to further refine risk specific to consumers shopping for Automotive loans. This score is based on the standard non-industry specific model and then overlays additional characteristics specific to automotive loan credit behaviors.

Why are there different versions of the FICO score, like FICO II, FICO III and FICO 08?

Every few years FICO redevelops their score model based on more recent consumer credit behaviors. This allows FICO to refine their algorithms to more accurately reflect potential risk and takes into account changes in credit behaviors. Each bureau supports a version of these FICO scores under their own branded names. FICO II, FICO III and FICO 08 are the branded names for the FICO score from Experian. See the above chart for the names of available FICO scores.

What is a credit bureau score, and how is it calculated?

Credit bureau scoring is a scientific way of assessing how likely your client is to pay back a loan from the data available on his/her credit report. The score measures the relative degree of risk a client represents to the investor. It is not a measure of your client’s income, assets, or bank accounts, although those and other factors are still considered by lenders independent of the score.

Fair Isaac has developed several different scorecards to calculate a consumers credit score. Fair Isaac leverages actual credit data on millions of consumers, and uses complex mathematical methods to perform extensive research into credit patterns that forecast credit performance. Through this process they identify distinctive credit patterns. Each pattern corresponds to a certain likelihood that a consumer will make his/her loan payments as agreed in the future. The score is based on all the credit-related data in the credit bureau report-not just negative data such as missed payments or bankruptcies.

Fair Isaac started building credit scoring systems in the late 1950’s and credit bureau scores-based solely on credit bureau data were first introduced in 1981.

How do I prequalify consumers using a credit report?

A credit report is an important prequalification tool for businesses that rely on consumer financing. To get more customers financed successfully, it is vital to prequalify a customer.

Do your homework in advance

It’s important to have a good understanding of how lenders look at credit scores and reports. This can be accomplished by simply getting the answers to some basic questions. Ask questions like:

• What does a lender look for when they finance a loan?
• What do they like to see in terms of credit scores?
• Do they prefer an industry-specific credit score model?
• Do they prefer a credit report from a particular bureau?
• What are the debt-to-income ratios they’re looking for?

Use credit scores along with the entire report

Credit scoring has become the primary means of assessing a consumer’s creditworthiness in most consumer finance industries. Credit scores are calculated based on mathematical equations developed by Fair Isaac Corporation. These score models are commonly known as FICO® scores. FICO is the most popular scoring model used among lenders and creditors to calculate a consumer’s credit risk. By comparing this information to the patterns found in thousands of past credit reports, scoring estimates the level of risk a lender or creditor is assuming.

Credit scores are most useful when used in combination with the total credit history. While a credit score allows for a quick evaluation of a customer’s creditworthiness, the information in the credit report itself may provide valuable insight that can help you close the deal.

Review the credit report summary

Some credit reports provide a summary section for at-a-glance assessment. The summary will give you quick information about the customer’s payment history, available credit, and public record information, such as bankruptcies. The summary is a great way to get a quick snapshot of a customer’s credit history and can save you from having to weed through the details of every tradeline in their credit file.

Look for major derogatory information first

Pay extra attention to bankruptcies. Many lenders will not even consider financing a customer with a bankruptcy that’s less than two years old. A particular lender may be more inclined to approve a loan with this type of customer than others.

Consider the length of the credit history

A customer that has extensive credit history is considered less risky due to the amount of data available on their credit record. The evaluation of over 30-years of payment habits and debt repayment practices is more dependable than only 3-years of credit history. Bottom line; the less credit history a customer has, the higher the financial risk – and the higher the interest rates on their loan.

Assess credit card usage

A customer that has balances of more than 50% of the credit line is a red flag to lenders. It is often an indication that the customer may be living beyond their means.

Determine any mitigating circumstances

If a customer has late payments or collections on their credit report, there could be reasons behind the delinquencies that will impact your lenders’ financing decisions. Interview your customer to gather details that might play in the customer’s favor. Was this person laid off from work or on disability during this period?

Pay attention to recent history

The most important period to look for in terms of a customer’s credit history is the last six months to two years. Lenders look very hard at the recent past, and if there are delinquencies within this period, it will have more of an impact than five-year-old delinquencies.

Making a match

In the end, the ability to efficiently assess a customer’s creditworthiness in terms of the lender's criteria can help you to effectively match the two together. Once you’ve made the perfect match, you have a satisfied lender, an improved closing ratio, and a happy customer.

How can I increase my client’s FICO score?

If you are calling about the FICO credit bureau scores that range from approximately 300 to 850 points, then you are referring to one of the three single repository scores developed by Fair Isaac and available through the credit bureaus. The scoring models, as well as your client’s credit data, reside at these credit bureaus. Fair Isaac does not have the ability to access your client’s credit data or calculate the client’s score. Scores are calculated at the bureau and are based on the data housed within that individual bureau, so each credit bureau score may not be the same.

If you requested that another bureau report be obtained to get an updated score, then the score is likely to change for many reasons; however, it is not possible to control how that score will change. The credit items on the report are updated often, so new items are likely to have cropped up since the previous reporting. Additionally, repeatedly requesting your client’s credit report may substantially increase the number of inquires on the repository report, which may cause the score to drop.

Over time your client can improve the information in their credit report by paying all bills on time and using credit wisely. As derogatory data in the credit report gets older, it affects the score less. A missed payment from four years ago will not count as much as a missed payment from six months ago.

To understand why your client’s credit report scored the way it did, look at the four reason codes given with each score. These are the top factors impacting your client’s credit score, although other factors may have contributed.

How does First Advantage CREDCO merge bureau FICO scores?

First Advantage CREDCO never merges credit scores. Through our patented merge technology, we are able to blend credit information from multiple credit bureaus to eliminate duplicate tradelines. However, no information is lost. The multi-bureau credit information is simply re-formatted into a consistent, user-friendly format. First Advantage CREDCO's merged multi-bureau reports help our clients reduce risks by providing more comprehensive credit information on their customers.

COMPLIANCE TOOLS

What is OFAC?

The Office of Foreign Assets Control (OFAC) is a U.S. government agency that maintains a list of names and aliases of individuals, organizations and companies that the U.S. government has classified as potentially dangerous and a potential threat to national security. The U.S. government updates these lists periodically and maintains the blocking program. This requirement falls under the USA PATRIOT Act, the anti-terrorism legislation that was signed into law on October 25, 2001 as a result of the events of September 11.

Financial institutions, securities firms and insurance companies are required by law to block or freeze property, payment of any funds transfers and transactions with anyone on this list. Failure to comply with OFAC regulations may result in strict penalties. Criminal violations can result in:

• Fines of $50,000 to $10,000,000 and/or
• Up to 30 years imprisonment

For more information on U.S. government’s requirement, compliance, effective date and guidelines, please visit the Office of Foreign Assets Control.

What are the Red Flag Rules?

Commonly known as the red flag rules, the full name for the regulation is the Identity Theft Red Flags and Notices of Address Discrepancy. The rules were developed in response to the findings of the President’s Identity Theft Task Force, which found that identity fraud results in billions of dollars in losses each year to individuals and businesses.

Basically, the rules, which are applicable to both dealers and financial institutions, entail implementing an Identity Theft Prevention program. According to the Federal Trade Commission, this program must include “reasonable policies and procedures for detecting, preventing and mitigating identity theft.”

The Red Flag Rules were passed on January 1, 2008. Dealerships must be compliant by June 1, 2010. For more information on Federal Trade Commission’s requirements, effective date and guidelines, please visit the Federal Trade Commission.

ID VERIFICATION

What are the Red Flag Rules?

Commonly known as the red flag rules, the full name for the regulation is the Identity Theft Red Flags and Notices of Address Discrepancy. The rules were developed in response to the findings of the President’s Identity Theft Task Force, which found that identity fraud results in billions of dollars in losses each year to individuals and businesses.

Basically, the rules, which are applicable to both dealers and financial institutions, entail implementing an Identity Theft Prevention program. According to the Federal Trade Commission, this program must include “reasonable policies and procedures for detecting, preventing and mitigating identity theft.”

The Red Flag Rules were passed on January 1, 2008. Dealerships must be compliant by June 1, 2010. For more information on Federal Trade Commission’s requirements, effective date and guidelines, please visit the Federal Trade Commission.

What does the score mean on the BuyerID Index report?

BuyerID Index is a predictive model that returns a three digit score ranging from 000 – 999.
The higher the score, the greater the likelihood of identity risk. BuyerID Index scoring is the opposite of the FICO scoring that you’re used to, where a high FICO score is good.

Where is the BuyerID Index report located when I pull a credit report?

The BuyerID Index report is provided as a separate tear sheet when you receive your CREDCO credit report. It is not part of the actual credit report.

Are there any limitations or ‘rules of usage’ with BuyerID Index?

BuyerID Index cannot be used as a factor in establishing a prospective customer’s eligibility for credit. It can solely be used to help you verify the identity of an applicant in order to prevent fraud or identity theft. You may only use BuyerID Index for internal business purposes, and you may not disclose it to any third parties except to the extent required by law. Please consult your legal counsel if you have any concerns about this service and what it means to your business.

ACT PORTFOLIO MANAGEMENT

What is the ACT Product Suite?

The ACT Product Suite is a set of three Portfolio Management tools to help you evaluate and manage your customer accounts. Each product is based on alternative financial services data, data not typically found on an application or at the traditional credit repositories.

• ACT Report - Non-traditional & alternative credit information
• ACT Monitoring - Proactive account monitoring
• ACT Tracing - Receive new and updated customer contact information

What is included in my subscription?

Unlimited ACT Reports, unlimited monitoring of your records for ACT Monitoring reports and ACT Tracing reports, unlimited ACT Monitoring Reports, online user training and support materials, and email alerts when new information is available. There is an additional fee to purchase the ACT Tracing reports.

Do I have to sign up for the entire suite?

ACT is a three-step process. All products work together and support each point in your sales and servicing process. We strongly recommend signing up for all products to maximize the benefits.

Why do I need the ACT Report?

Whether you already pull a traditional credit report or not, the ACT Report will give you information on other consumer financial behaviors that may affect the budget plan, deal structure and financial stability of the customer. This is information that a consumer may not typically disclose on an application because it is not traditional credit. We include rental inquiries and Landlord Tenant court records that can make you aware that a consumer may be moving.

Why do I want to monitor my accounts?

Monitoring your accounts gives you valuable insight, potentially indicating that your account may be having financial challenges. We can deliver new inquiries (credit and landlord), new delinquencies, bankruptcy and landlord eviction public records. You can then tailor your servicing strategy based on reported activity. We also color code alerts by priority so that you can focus on the alerts that could have the greatest impact.

How effective is your Skip Trace product?

Customers, who actively purchase ACT Tracing reports, have seen a 90% success rate!

What is Pay Day Lending?

Pay Day loans are short-term loans for small amounts. The terms are usually about 2 weeks and the amounts are around $150 - $300. Internet Pay Day lenders may offer larger amounts around $500. Interest rates and fees equal about $15 per every $100 loaned.

Do many consumers use Pay Day Lending?

With the current economic trends, more and more consumers are turning to Pay Day lending to get them by week to week. It is estimated that there are about 80 million unbanked consumers in the US who use alternative finance services regularly. Our (Teletrack) database has data on 35 million unique consumers and this will continue to grow.

What is Rent to Own?

Rent To Own (RTO) companies offer short-term lease agreements for products and services. This is an alternative to traditional financing. For merchandise leases, consumers may return the products at the end of the lease or purchase the products outright.

What is a Delinquency/Charge Off?

It is common in the alternative financial services industries for missed payments to be reported as charge offs, especially in payday lending, since these are short-term loans with no recurring payments.

What is a Settled/Paid Charge Off?

In the alternative financial services industries, when a customer misses a payment, this is reported as a charge off. The account is updated and reported as Settled / Paid when a recovery action has taken place. This may mean that the NSF check was satisfied, the customer paid the account, merchandise was repossessed or legal action was taken. We display the specific recovery action in the ACT Report so you know the end result.

Why is there no payment history with the trade lines?

Short-term loans do not have a multiple payment structure. Only new accounts opened and derogatory statuses are captured and reported.

What does the color-coding on the ACT Monitoring report mean?

The color-coding is designed to help you prioritize the alerts you view and focus your servicing strategy.

• Red Alert is a high priority alert. Events flagged as a Red Alert are Charge-Offs, Paid Charge-Offs, Bankruptcy data, and Landlord / Tenant PR data
• Yellow Alert is a medium priority alert. The event flagged as a Yellow Alert is a new Landlord / Tenant Inquiry
• Green Alert is a low priority alert. The event flagged as a Green Alert is a new Inquiry.

EMPLOYMENT SCREENING

Why conduct background checks?

Because of increasing incidents of workplace violence, more and more governing bodies and courts in the United States have created laws or made rulings regarding employers’ responsibility to make sure they know who they are hiring before they put clients and employees at risk. By conducting a reasonable background check, employers should have the information needed to help them make better hiring decisions.

What laws govern background screening?

Employers may conduct lawful pre-employment screening in order to hire the best-qualified candidates. The Fair Credit Reporting Act (FCRA) balances the right of employers to know whom they hire with an applicant’s right of disclosure and privacy. The FCRA requires that an employer first obtains the applicant’s written consent to conduct a background check. In the event negative information is found, the applicant must be given the opportunity to contest the record if he or she believes it is inaccurate or incomplete. Employers should set up a consistent policy so similarly situated applicants are treated the same.

Does background screening invade privacy?

Section 604 of the FCRA is designed to protect consumers’ privacy interest in the files of credit bureaus and other consumer reporting agencies by limiting access to that data to parties who have one of them enumerated ‘‘permissible purposes’’ for the information. Employers may request and review information about an applicant only for employment purposes. This may include reviewing court records for criminal convictions, calling former employers or verifying education records. As such, employers are reviewing information that is a valid and non-discriminatory predictor of future job performance.

Does background screening discourage good applicants?

Employers who engage in screening should not find that applicants are deterred. Job applicants have a desire to work with qualified and safe co-workers in a profitable environment. A candidate should understand that background screening is a sound business practice that helps firm’s bottom line and is not an invasion of privacy.

Does background screening delay hiring?

No. Background screening is normally done in 48 to 72 hours. Most of the information needed is not stored in databases but must be obtained by going to courthouses or calling past employers or schools. Occasionally, there may be expected delays, such as previous employers who will not return calls, schools that are closed for vacation, or a court clerk who needs to retrieve a record from storage.

What job classifications should absolutely include background checks? Are there some positions for which checking is not critical?

It is recommended that, before you develop your hiring and screening criteria, you consult with a licensed attorney who is qualified to advise you regarding the various federal and/or state laws that may impact your screening practices.

Can I conduct background investigations after I have made an offer?

Post-offer and contingent investigations are quite common in corporate America. Due to the fact that employers are under tremendous pressure to fill positions and extend job offers to qualified applicants, contingent offers allow employers to extend or rescind offers based on the information contained in an applicant’s background investigation.

Can I conduct background checks on current employees?

Although, most background checks are conducted pre-employment, there are instances when periodic checks may be in order. A licensed attorney can help you determine when and how such checks may be conducted.