Financially Tough » Auto Loans http://www.financiallytough.com Getting Tough With Your Money Thu, 24 Jun 2010 06:51:18 +0000 en hourly 1 http://wordpress.org/?v=3.0 Credit Score And Auto Loan Rates http://www.financiallytough.com/credit-score-and-auto-loan-rates http://www.financiallytough.com/credit-score-and-auto-loan-rates#comments Sun, 01 Mar 2009 05:52:29 +0000 http://www.financiallytough.com/?p=52 Yet Another Related Posts Plugin.]]> I found a great post om MyFICO forums that dives in the subject of your credit score and auto loans.  It goes into detail about your credit score and how auto lenders use it.

A unknown fact I think by many consumers is the existence of a “FICO Auto Industry Option.”  This is not available to consumers to review.  It is only available to dealers and auto finance companies.

The scoring is also different than the traditional FICO scoring model.  The difference is the FICO auto score puts more emphasis on your auto credit history.  This allows auto finance companies and dealership to get a better idea of how you manage auto credit. It gives lenders more information such as:

  • Have you made late payments on an auto loan
  • Have you ever had a car repossessed
  • Have you ever been sent to collections because of a auto loan
  • Have you claim bankruptcy involving your auto loan
  • Have you had to settle an auto loan

So this does mean you now have 3 more FICO scores to consider when you are trying to get an auto loan.

If you have a good credit score and want the best auto loan rates, you must be willing to negotiate.  Be prepared to call BS if the dealer interest rates are too high and ask them what credit score they are using.

Also, don’t be afraid to walk away from the deal.  There are many other funding options today like peer to peer loans.  Don’t forget they want you in the car and they are usually will negotiate.  Keep on your tows and use your good credit score and get the best auto loan rates.

Related Blogs

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

]]> http://www.financiallytough.com/credit-score-and-auto-loan-rates/feed 0