The FICO Automotive Score is a credit score used to evaluate potential borrowers by car loan lenders. It comprises 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
Lenders use your FICO auto score to decide if you're a candidate for auto loan approval. It has many variations but is still the most widely used score by lenders. The most recent version of the FICO auto score is FICO 9 and was introduced in 2014. It can be obtained from all three major credit agencies. To improve your score and get better deals, you should be able to identify the weights of each variable.
Credit bureaus may receive information from a variety of sources. These include debt collectors, loan companies, and others. Keep in mind, however, that not all companies will report to every bureau. Your FICO score, which is a composite of credit reports, may not be 100% accurate.
Variables in VantageScore credit scores
Your credit score is based on various factors, including your payment history and the age of your credit accounts. These variables account for 61% of your total score. FICO however gives 35% of its weight to payment histories, 10% to new lines and 15% to overall credit history. Both credit scores penalize late repayments equally. Your credit score can be improved by using credit responsibly and paying your bills on time.
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. This model also considers the fact that TransUnion and Experian have stricter reporting requirements for tax liens and civil judgments. Your VantageScore score therefore is more reliable.
How to access FICO auto score
When you're looking for a car, your FICO auto score could be an important tool. It can also be an important way to keep track of your credit history. The FICO base score is a general indicator of creditworthiness. However the FICO Auto score is only applicable to auto loans. There are several versions. The most recent version, released in June 2016, is based on trended data from TransUnion's CreditVision Data and covers up to 30 months.
An increase in your FICO score can help you get approved for a loan and can even lead to a lower interest rate. Signing up for credit monitoring may help you improve your FICO auto score depending on your financial circumstances. This service may not offer the same version that your lender, so be careful. Many lenders use one of the three credit bureaus for their auto scores, so you should find out which one you're eligible to use.