The FICO auto score is a credit rating used by car loan lender to evaluate potential borrowers. It consists of two parts: a base FICO score and an industry-specific overlay score card. The industry-specific overlay score cards are designed to assess auto debt risk.
Variables in your FICO Auto Score
The FICO auto score is a score that lenders use to determine if you're a good candidate for auto loan approval. Although it has many variations, the FICO auto score is still the most commonly used score by lenders. The most recent version of the FICO auto score is FICO 9 and was introduced in 2014. It is available from all three major credit bureaus. So that you can improve and qualify for better deals, it is essential to understand the weights given to each variable.
The credit bureaus report information to them via various sources. These include debt collectors, loan companies, and others. However, it is important to keep in mind that some companies do not report to all three bureaus. Your FICO score may not accurately reflect your credit history.
Variables within your VantageScore credit score
Your credit score is determined by a number of factors including your payment history, credit account age, and your credit card debt. These variables contribute 61% to your total score. FICO however gives 35% of its weight to payment histories, 10% to new lines and 15% to overall credit history. Late payments are equally punished by both credit scores. Your credit score can be improved by using credit responsibly and paying your bills on time.
VantageScore 4.0 is the latest VantageScore credit model. It uses longer histories to give a more comprehensive picture of a borrower’s past credit history. TransUnion and Experian both have more strict reporting requirements in regards to tax liens, civil judgments, and tax judgments. Your VantageScore score therefore is more reliable.
How to access FICO’s auto score
When you're looking for a car, your FICO auto score could be an important tool. It is also useful for keeping track of your credit history. While the base FICO score is a general measure of your creditworthiness, the FICO auto score is specific to auto loans. There are several versions. The most recent version, which was released in June 2016, uses trended data derived from TransUnion's CreditVision Data. It covers a period of 30 months.
A higher FICO auto score will increase your likelihood of getting approved to borrow money. This can also lead you to receiving a better interest rates. A credit monitoring service may allow you to access your FICO Auto Score depending on your financial situation. These services might not offer the exact same service as your lender. You can use any of the three credit bureaus to improve your auto score.