Consumer Car Buying Advice Blog

If you are currently looking for auto loans for bad credit you may also be wondering how FICO came up with your credit score.

What we do with your score

Getting back on your feet can be difficult enough even with good credit, but if unforeseen circumstances such as a job loss, layoff or medical bills have lowered your credit scores, your problems can get even bigger. This is where web sites such as ours at www.autocreditexpress.com can make the process of reestablishing your car credit easier.

We have helped thousands of applicants with low Beacon scores rebuild their auto credit simply by filling out our online bad credit car loan application form. By avoiding a tote the note dealer, you can begin a new chapter in your life with a loan approval at one of our affiliate dealers for a second chance auto loan. This, along with paying the rest of your bills on time, will enable you to re-establish your car credit and also raise your FICO scores.

Speaking of FICO scores, you may be wondering how your credit scores (you have more than one) are computed and what information is used to come up with that all-important three-digit number.

Getting to know your FICO score

There are 5 factors that FICO (the company formerly known as Fair Isaac) uses to determine your credit score. Where you fall in this ranking can determine a wide range of things ranging from how much you pay for car insurance to whether or not you’ll get approved for an apartment lease. It also will have a great deal to do with whether you can finance your next car with a traditional lender or whether you’ll need to apply for auto loans for bad credit (there will be more, later, on where and how you should do this).

Here are the 5 factors that will help determine how you’ll finance your next car:

Payment History - Payment history affects approximately 35 % of your score. Making all of your monthly payments on time goes a long way towards being able to finance a car through traditional lending channels. If you have been unable to make your payments on time, bad credit car loans could be an alternative. Of special note: recent late payments will have more of a negative impact on your score while those from the past will not affect your score nearly as much.

Account Balances – How much do you currently owe to creditors? Your current debt load will affect about 30 % of your FICO score. If your credit cards are at their limits and your revolving credit is maxed out, this will have a negative effect on your score. Bad credit car loan buyers, especially, should try and lower the ratio of debt to available credit before applying for a loan. The lower your balances (a rule of thumb is to keep your current balances at 30% of your credit limit or lower), the higher your score which will lower the interest rate that you will be charged on a bad credit auto loan.

Credit Utilization – The types of credit you are currently using impact your credit score by approximately 15 %. Banks, finance lenders, credit cards, mortgages, and all other financing is included in this category.

Depth of Credit – How long have you been using credit? Your time “in the bureau” accounts for approximately 10% of your credit score. The longer you’ve been using credit, the higher your score will be.

Recent Credit Opened – Recent credit applications impact your score by about 10%. If you are constantly applying for new credit (such as loans, credit cards, etc.) this will be reflected in a comparatively lower credit score.

As we see it

As a bad credit car loan buyer you do have a choice: you can either drive around town, hoping to find a dealer that can help you, or you can go online to www.autocreditexpress.com.

At Auto Credit Express we have helped thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their auto credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans. Since our inception, we have processed over 1 million online bad credit auto loans and our dealers have closed over $2 billion in auto loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.

Tags: auto credit, Bad Credit, beacon score, beacon scores, car credit, credit, credit score, credit scores, fair isaac, fico, FICO score, fico scores, tote the note

This entry was posted and is filed under FICO score. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.