Yahoo Autos What Is a FICO Auto Score? Find Out with This Guide
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A FICO score is the go-to source for most auto loan companies. In fact, a unique kind of FICO auto score has been specifically designed for vehicle loans. Finding your FICO auto score is fairly straightforward, and you can do it for free.
We'll explain the most important things you need to know about the FICO score, including how to find your score and how to raise your score.
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What is a FICO Auto Score?
A basic FICO score measures how reliable you are at paying back debts. An auto loan FICO score specifically measures your ability to pay back auto loans.
The basic FICO and auto loan FICO scores use different credit scoring models. The base FICO score ranges from 300 to 850, but FICO auto scores range from 250 to 900.
The FICO auto score that lenders look at is measured using the 9 XT version of auto score measurement. This version is designed to take into account the past 30 months of credit behavior using data from TransUnion's CreditVision system.
Five major factors contribute to this version of the FICO auto score:
Payment history
Credit utilization rate
Length of credit history
Mix of credit
New credit
Additionally, the FICO auto score prevents certain factors from hurting your credit score significantly.
For example, unpaid medical bills don't incur as much of a penalty as other unpaid bills. Plus, paying off an account that was in collections no longer counts against your credit score.
How Do I Check My FICO Auto Score?
It's always a good idea to check your FICO auto score before you take out a car loan. This will give you an idea of what you can expect in terms of loan terms and interest rates. Checking your FICO auto score is easy, and you can do so directly from FICO.
A one-time report from a single credit bureau, whether it's Experian, TransUnion, or Equifax, costs about $20, though you can get a report from all three for $60. Because your credit score can differ slightly depending on the bureau, it's best to get your credit score from multiple credit bureaus to get a clear picture of your scores across the board.
For example, imagine you have a credit score of around 665. TransUnion reports your score as 667, while Equifax reports it as 660. The TransUnion report would put you in the prime category, while the Equifax report would put you in the nonprime category. Most lenders don't disclose what bureau they use to run credit reports.
Keep in mind that any single report you get from FICO will only be good for 30 days. These reports function as a snapshot of your credit at that moment, which changes continually based on your financial activities.
