The FICO Auto Score, a credit score that car loan lenders use to assess potential borrowers, is called the FICO Auto Score. It consists of two parts: a base FICO score and an industry-specific overlay score card. The base FICO score is a general indicator of financial health, while the industry-specific overlay score cards focus on auto debt risk.
Variables in your FICO Auto Score
Lenders use the FICO score to determine whether you are a suitable candidate for an auto loan. It has many variations but is still the most widely used score by lenders. FICO 9, the latest version of FICO's auto score, was introduced in 2014. It is accessible from all three major credit institutions. It is important to know how each variable is weighted in order to improve your score.
Credit bureaus may receive information from a variety of sources. These include debt collectors, loan companies, and others. It is important to remember that not all companies report to all three bureaus. The FICO score is a composite from your credit reports and may not reflect the truth.
Variables within your VantageScore credit score
Your credit score is based on various factors, including your payment history and the age of your credit accounts. These variables are responsible for 61%. By contrast, FICO gives 35% of the weight to payment history, 10% to new lines of credit, and 15% to overall credit history. Late payments are equally punished by both credit scores. Credit responsibly and timely payments can help you improve your credit score.
VantageScore 4.0 is the latest VantageScore credit score model. This version uses a longer history in order to show a better picture about a borrower’s credit history. TransUnion and Experian have higher reporting requirements regarding civil judgments and tax lien. This means that your VantageScore score can be considered more reliable.
How to access your FICO auto score
FICO can be helpful when you are trying for a new vehicle. It is also a useful tool to monitor your credit history. The FICO auto score, while the base FICO score gives a general idea of your creditworthiness and ability to repay loans, is more specific. It ranges from 250 to 900, and there are several versions. The most recent version was released in June 2016. It is based upon trended data from TransUnion CreditVision Data. It covers up to 30 month.
A higher FICO score can improve your chances of being approved for a loan. It can also help you to get a better rate. Credit monitoring services may be able help you access your FICO credit score, depending on your financial situation. However, you must note that these services may not always offer the same version as your lender. You should check which credit bureau you are eligible to use as many lenders use these three credit bureaus to calculate their auto score.