The final determination on your
auto loan is in your
credit
score. And the
credit score needed to get a
car loan
depends on the
lender. This
credit score is typically known
as your
FICO Score. It discloses what kind of borrower you will probably be,
according to
BankRate.com.
The inventor of the
FICO Score is the Fair Isaac Corporation, online at
FairIsaac.com, as noted by
UnionPlus.org.
The leader in credit
scoring, listed by
UnionPlus.org,
is the
FICO Score. "No one really knows the
mathematical model to calculate this three digit number," states
CarCredit.com.
Some factors, however, are known to affect your
FICO Score. These are listed by
CarCredit.com as:
- Outstanding Accounts;
- Derogatory Information: In which the most recent two years of credit
history are weighed higher than past history;
- Credit History including employment; and
- Use of Credit: The fewer the credit accounts open the better. And, the
less credit inquiries the better the FICO scores.
Steve Bucci, of
BankRate.com,
reports that
FICO scores, "Can be as low as 300
or as high as 900." The chart below shows how the lower scores may cost you more in
interest rates with
lenders.
BankRate.com
also says that the best
interest rates from
lenders will be a
FICO Score between 720 and 850. The worst
interest rates will be a
FICO Score 500 and lower, according to
BankRate.com.
There are
auto loan organizations online that will work with consumers who have
bad credit. Some of these include:
Custom rate and payment quotes are also available on line at
CarCredit.com,
along with personal
financing strategies. And if you can't get approved for a
bad credit loan
anywhere,
CreditAxis.com says it has an "exclusive" list available of
bad credit
lenders. Financial Guru Suze Orman has
FICO Score Kits online at
MyFICO.com.
There are over 2,000
credit bureaus in the United States that are gatekeepers
of your
credit, according to
CarCredit.com. Information on your
credit report can stay there for up to ten years.
CarCredit.com
also states the
three major credit reporting agencies as:
Experian Credit Information Service
PO Box 2002
Allen, TX 75013-2002
www.experian.com
Equifax Credit Information Services
PO Box 740241
Atlanta, GA 30374-0241
www.equifax.com
TransUnion LLC
PO Box 1000
Chester, PA 19022-1000
www.transunion.com
Other credit report sources to assist you online include:
To repair
credit the
ADNSGroup.Com and
AmericanDebtResources.com
(as examples) are available online.
