![]() The steps we’ve listed above are the tried and true way to improve your credit score with the most used credit bureau, Equifax, as well as the other two bureaus. Check if your credit reports are frozen because, if they are, the lenders will not be able to access them, and that could lead to your loan request being denied. Pay your bills on time, keep as low as you can on the credit card balance and credit utilization rate (preferably below 30%), and only request a new line of credit when needed. Luckily, there are ways to improve your FICO score. Buying a car with a bad credit score means you’ll have fewer options to choose from when looking for an auto loan to finance your new car purchase. It’s important to know which credit bureau is most used for auto loans, so we’ll cover that in a later section of this article, but your FICO credit score will affect you more. ![]() Good score ratings go from 670 upward, with most credit holders having a score between 600 and 750. ![]() The higher your score, the better your chances of getting favorable loan terms. Improving Your FICO ScoreįICO scores go from 300 to 850. You only need to leave your Social Security number along with a few other personal details. You can also get your FICO score via the Discover Credit Scorecard program that is free for all users. Bank of America, Citibank, and American Express offer free FICO score status for their clients. The service isn’t free, but the good thing is that this report is very exhaustive: It includes 28 industry-specific scores, and one of them is the auto credit score you need.Īnother way to obtain your credit score is to check your monthly billing statements from the company that issued your credit card. The most straightforward way is to go to and ask for the 1B report. Still, as a potential car buyer, you should know your credit score beforehand. Credit bureaus are intrinsically important to the overall story. We’ve mentioned the credit score first because every time you apply for an auto loan, a FICO score check will be performed to determine your creditworthiness. Then, there is the percentage of the total credit you’ve used, new credit requests, potential bankruptcy reports, foreclosure, and debt collections. An individual FICO score results from an algorithm that factors in many aspects of your credit history, such as unpaid debts, the number and types of open loan accounts, and how long you have kept these accounts open. More than 90% of car lenders use the FICO credit score. When buying a car (unless you already have the whole sum you’ll need) you’ll have to work with lenders. Let’s answer first the question of which credit score is used to buy a car. By the time you’re done reading, your expertise will rival that of the auto loan companies. We’ve gathered all the tips and tricks you’ll need to turn those credit checks to your advantage. Not to mention that car dealers might be in contact with all three credit agencies or perhaps just one of them when assessing your creditworthiness. Each one uses its score system, which makes an auto loan credit check sound like rocket science. Then, there are the three credit bureaus. ![]() FICO scores themselves have several versions. But, if you are buying a car on your own, you’ve got your work cut out, as there is a lot of seemingly conflicting data out there.įor example, there are multiple credit scores on one side and the FICO score on the other. In that case, you already have enough help to get the answers to the questions above. Suppose you subscribe to a service that monitors your credit. What do car dealers look for in credit reports? Which credit score will the car company check? Which credit bureau is most used for auto loans? But when you have to add your credit score to the entire calculation, it can suddenly seem like a lot less fun. ![]() Buying a car should be an adventure: You feel joyous at the prospect of getting a new car and excited to see how the vehicle will perform on the open road. ![]()
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