“There will probably be some tightening of underwriting standards,” said Mark Hewitt, president and CEO of Clear Lake Bank & Trust.
However things aren’t nearly as bad in Iowa as they are in places such as California or Florida, according to Hewitt.
Some lending institutions have been hit hard because of subprime lending, but most banks in Iowa “didn’t get involved in this stuff in the first place,” Hewitt said.
Kathye Gaines, Mason City branch manager for the Consumer Credit Counseling Service of Northeast Iowa, said local lenders probably will require consumers to have higher credit scores than they used to before approving loans.
Tim Rozen, sales manager at Community Motors of Mason City, said if you have a Beacon score below 600, “it’s difficult to get a loan right now” for a vehicle.
Until recently, consumers with scores as low as 550 could get loans, he said.
Rozen said the amount required for down payments hasn’t changed at Community Motors.
However, Gary Lafrenz, owner of Lafrenz Ford-Lincoln-Mercury in Mason City, said banks are looking for bigger down payments for vehicles.
“What they will finance has decreased quite a bit,” he said.
On the plus side, interest rates have stayed about the same, according to Lafrenz.
Lafrenz, Rozen and Steve Schukei, president of Schukei Chevrolet in Mason City, all said business has been somewhat slower than normal for this time of year.
Schukei said the downturn at his business has more to do with people not looking to buy new cars right now rather than an inability to get financing.
He noted that Schukei does some financing in-house.
“We haven’t restricted lending at all,” Schukei said.
Dealing with your credit score
Kathye Gaines, Mason City branch manager for the Consumer Credit Counseling Service of Northeastern Iowa, offers the following tips for people who want to improve their credit score:
Visit www.annualcreditreport.com or call 1-877-322-8228 to get your credit report and credit score. Consumers are allowed one free credit report every 12 months from each of the three nationwide consumer credit reporting companies — Equifax, Experian and TransUnion. You can ask to receive reports from all three companies at once, or have them spaced out over the 12 months to keep track of any changes. If you want to know what your credit score is, you have to pay $7.99.
Check your credit report to see if you are behind on any of your payments. If so, contact your creditors to see if they can make any adjustments.
If you think something on your credit report is inaccurate, you can dispute it for free.
If you have any open accounts you haven’t used for a long time, consider closing them.
Pay all your bills on time.
Pay at least the minimum amount required each billing period. If you make a payment but it isn’t for at least the minimum amount, it will be considered a late payment and you will have late fees and other charges.
Call the Mason City branch of Consumer Credit Counseling Service of Northeastern Iowa at (641) 421-7619 or (866) 720-9050 to make an appointment for free credit counseling.





