Explaining FICO Scoresby Steve Cypher on Saturday, October 6th, 2012
Car buyers hoping to repair their credit with a bad credit car loans should also have a basic understanding of how FICO scoring works.
At Auto Credit Express we understand this because we’ve spent the past two decades helping car buyers with credit issues find car dealers for their best opportunity of approved auto loans.
We also think that one of the best explanations of credit scoring would certainly come from the people at FICO – the company that created what is currently the most widely-used credit score.
About a year ago they conducted a joint “TweetChat” with Bankrate.com with a few of those questions and answers listed here:
Q and A 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.
The Bottom Line
Understanding the credit scoring process is especially important for consumers with poor credit interested in starting the process of credit repair.
Another important step, if you’ve had past car credit issues, is that Auto Credit Express can help you find a dealer for your best chance at approved auto loans.
So if you’re ready to reestablish your auto credit, you can start here by filling out our online car loans application.