If you are a credit-challenged applicant, then you should know what your credit scores are when applying for a bad credit auto loan. This will help you to know and understand which type of car loan you may need or qualify for.
Know the score
Consider ordering a credit report and a credit score from each of the three major consumer credit reporting bureaus: Equifax, Experian and TransUnion. You are entitled to receive one free credit report every 12 months. You can order a Free report from each at annualcreditreport.com, but you'll need to pay for your credit scores.
You can also simplify the process by visiting one of the many credit score sites where you can receive all three reports and all three credit scores at the same time.
Credit score differences
All three bureaus use their version of the FICO score as well as a new score that they jointly developed called VantageScore. Unfortunately all three VantageScore or FICO scores are generally not the same. This is because the information that appears in each of your credit reports is usually different.
Some reasons that may result in credit score differences:
1. Some creditors report to only one or two of the bureaus
2. It may take one bureau longer to report a new creditor
3. It may take one bureau longer to remove or update an old credit file
4. Bureaus may be reporting inaccurate or incomplete credit information
Credit score ranges
After you know your credit scores, it's time to see where yours fit in and what kind of car loan you might qualify for.
This is how Experian classifies the types of credit scores:
FICO Score: 740 plus
FICO Score: 680-739
FICO Score: 620-679
FICO Score: 550-619
FICO Score: less than 550
If you fall into either the subprime or deep subprime category, you'll probably need to apply for a bad credit auto loan. At Auto Credit Express we help people with bad credit find a dealer that can give them their best chance at an approval for a new or used car loan.