Consumer Car Buying Advice Blog

Everyone but especially those with less than perfect credit might be interested in some of the issues addressed in a recent TweetChat between FICO and Bankrate.com

Understanding credit scores

Consumers, especially those who are hoping to repair their credit, need an understanding of how credit scores work.

We know this to be the case here at Auto Credit Express where we’ve spent the last twenty years helping credit-challenged people locate a car dealer specializing in bad credit auto sales that can get them financed. Because of this, we designed our website so that car loan applicants with poor credit can research such issues as credit life insurance as well as today’s topic, FICO scores.

One of the best sources to explain credit scores would certainly be the people from FICO – the company that created the most widely-used score. Not long ago they conducted a joint “TweetChat” with Bankrate.com.

Here are a few of the questions and answers from that session that should be of interest to anyone applying for credit:

Question and answer TweetChat

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 import 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.

As we see it

Understanding how credit scores work is not only an important step for everyone but also an especially important one for those interested in the credit repair process.

Another important step, if you need a car and have damaged credit, is to check out the Auto Credit Express web site where we’ll help you find a dealer for your best chance at an auto loan approval that can help rebuild your car credit.

So if you really want to get your auto credit on track, you can begin now by filling out our online auto loans application.

Tags: Bad Credit, credit scores, fico scores

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