How To Get Your FICO Score For A Car Loan
DO you need your FICO score for a car loan? Your FICO score affects the type of interest of APR you will be offered on a car loan and the terms and condition of the loan.
For instance, most car dealerships do not require car buyers with super prime FICO score to place a down payment on a loan.
Your FICO score or your credit report is one of the most important items in the auto loan application process. Your score indicates to the lender your creditworthiness, or your ability to pay of the loan on time.
To get your FICO score visit www.annualcreditreport.com. This website is sponsored by the government which allows every American a free FICO score report once a year. This report, does not, however, give you an indication as to what are the specific factors affecting your FICO score.
To get the details of your credit report you will have to use a serice such as credit.com, freeannualcreditreport.com or directly from the website of one of the three credit bureaus:
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
Phone: (800)-685-1111
Experian
P.O. Box 2002
Allen, TX 75013
Phone: (888) 397-3742
Trans Union
P.O. Box 1000
Chester, PA 19022
Phone: (800) 916-8800.
79 percent of credit reports have mistakes. Comb through the report for errors. If you find any, then report it to the credit bureau for correction. Making corrections is crucial as a small change in credit score can make a huge difference in the APR of an auto loan.
What affects your FICO score
You FICO score is affected by 5 main factors:
35% payment history
30% Amount of debt owed
15% age of credit history
10% types of credit
10% credit inquiries.
Why knowing your FICO score is important when getting a car loan?
To avoid being outsmart by a car dealer or errors in credit overview process, it is important that you know exactly where you stand. It would also allow you to assess whether the APR that you are being offered is fair.
Ask the dealer what kind of credit scoring system does he use? Scorex Plus or the Vantage Score? This scoring systems are different and could affect the APR of the loan.
Use you knowledge of credit score and the information you have obtain from searching online for deals to negotiate a car loan which terms are fair.
