WHAT IS A FICO AUTO SCORE?
FICO Auto scores are specific industry version. It is delicate and predictive in the potential condition of auto loan repayment crisis. The base FICO Score is created first then adjusted on predicting the probability to pay as agreed in the future such as an auto loan.
FICO score is the basis of FICO Auto Score. FICO Score is the one that designates you in the level of worthiness in any sort of credit. On the other hand, FICO auto score is the one that designates you in the level of worthiness in any sort of credit specifically for auto loans.
Some of the automobile finance lenders use the FICO Auto Score instead of FICO Score. It is essential to know what score lenders need to use in their review process of the credit. They also determine the other information they need to consider in the review process of the credit. They need more information about income, the value of the collateral and employment history of the person.
The FICO Score and FICO Auto Score are different in scoring range. The base FICO score falls between 300 and 850. On the other hand, FICO Auto Score ranges from 250 to 900. As you want to shop for financing to buy car or vehicle, there are some factors that will affect your payment.
Length of Loan
Buyers choose a car loan that lasts for five years or longer. The average car loan length is about 65 months in the last quarter of 2012. The good in having a longer car loan is that in terms of payment, it will be lower. The disadvantage is that you may owe your car or vehicle more than it’s worth.
It is made easier for you to reduce the amount you borrow if you have a larger down payment. Some prefer to sell their current car or vehicle to use as a down payment but there are some lenders who don’t require a down payment.
The credit score will help you find out the interest rate of your payment. If ever you don’t have a not so perfect credit, it does not mean that you don’t have a modest rate. The auto lender credit score may be different from the score you see if you have your own credit.
Refinance Car Loan
If you get a lower rate, you will save money and you can pay your loan quickly. There’s another option, which is that you can extend your loan term. It makes your payment affordable. It is easy to do. Just refinance your auto loan then apply to determine if you qualify for it.
In time, the lenders will check your credit or even request a score. It will be noted on more than one of your credit reports but most credit score structure will ignore the current auto loans queries. If you want to protect your credit, watch out for the interest rates for it may increase without any notice. If you are desperate to have a car or vehicle, try to get a personal loan. If you can’t, try a non-profit credit agency which can help you find solutions in times of financial difficulties.