FICO Scores and Bad Credit Auto Loansby Steve Cypher on Friday, July 29th, 2011
In a recent TweetChat with Bankrate the folks at FICO answered a number of questions that should be of interest to people applying for no credit auto loans
What you should know
We often get questions from problem credit auto loan customers about their credit scores.
We understand why applicants have questions because we’ve been involved in bad credit car sales for nineteen years. During that time frame, we’ve helped hundreds of buyers for horrible credit auto loans here at Auto Credit Express.
We also show them the reasons a tote the note dealer won’t help their credit score and help them navigate the loan process to reduce the chances of repossession. Applicants outside our retail area can visit our web site for an online car loans bad credit application to find a dealer in their area, as well.
But the best source to explain credit scores might be the people from FICO, who recently conducted a joint “TweetChat” with Bankrate.com.
Here are a number of questions and answers from that session that we thought might be of interest to people thinking of applying for bad credit auto loans:
FICO Score questions and answers
Does my credit score determine whether I get credit?
Your score will likely play a big part in that decision, but lenders won’t all view your score the same way. That’s because lenders have different tolerances for risk. Some lenders will require a higher score than others do for the same basic credit product. Also, lenders often will consider other information in addition to your score as they make their decision. This can include information from your credit application (such as income, length of time on your job, own vs. rent), any prior credit experience you have had with that lender, and the value of the property (auto or real estate) you want to buy.
What can I do to significantly improve my credit score in the next couple of days?
There are no quick fixes when it comes to improving your credit standing. Getting a good FICO® Score is the result of maintaining responsible credit habits over time. The most important of these habits are:
• Pay your bills on time
• Keep any credit card balances low
• Apply for new credit only when necessary
You also should check your credit reports for accuracy. You can get your reports for free once each year from www.annualcreditreport.com.
Does checking my own credit report or credit score hurt my FICO Score?
No. When you check your own FICO Score or credit report, the resulting inquiry on your credit report is ignored by the FICO scoring formula and will never hurt your FICO Score.
Are the FICO Scores sold to consumers by myFICO.com an approximation of the score lenders see?
FICO Scores sold by myFICO.com are precisely the same scores used in credit decisions by thousands of U.S. lenders and other businesses, large and small. Other websites may sell scores that imitate the FICO Score in look and feel, but they use different formulas, have different score ranges, and may mislead people into taking inappropriate actions with their credit. Genuine FICO Scores are always clearly labeled as such.
What we can do
Auto Credit Express has helped thousands of people with bad credit buy cars and establish their auto credit through a nationwide network of car dealers that specialize in approved auto loans.
So if you’re serious about getting your car credit back on track, you can begin now by filling out our online car loans bad credit application.