Did you know that when applying for a car loan, lenders can actually chose which credit score they use when assessing an applicant’s request? Or even that you had more than one credit score at all? It’s true. In fact, some lenders even use more than one credit score at a time when processing an application.
What Are The Differences In Credit Scores?
Every different model for a credit score is different, requiring unique criteria to properly generate a correct credit score unique to all others. For example, one credit scoring structure could determine that a collections account is a negative item even after it’s been paid off, while another disregards collections accounts completely. Most major lending market leaders, of course, utilize similar scoring models, with the exception of FICO®, which enforces a credit score ranging from 250 to 900 for auto lenders compared to the standard 300-850 credit score.
What Credit Scores Do Car Lenders Use?
Some of the more popular/reliable credit scores auto lenders trust are:
FICO® Score 8 & 9 are the latest generic scoring models created, not created specifically for auto lenders, but used very often by them.
FICO® Auto Scores offer industry-specific credit scores generated based on previous auto loan payment history, generic FICO® score information, and payment predictions.
VantageScore® 3.0 & 4.0 are the latest and greatest scoring models to come from VantageScore, and were even used for more than 70% of new auto loan/lease applications between July 2016 and June 2017.
How Do You Check Your Auto Score?
If you’re ready to start keeping a better eye on your credit, your first step needs to be to look at your credit report. Now, you can do this by signing up for a credit monitoring service, but the better way is to try and take advantage of one of several free options available, such as:
- Requesting your credit score from a bank/credit union;
- Asking a credit lender outright for your score;
- Seeking out a private student loan lender;
- Utilizing virtual financial comparison sites;
- Pursuing financial/credit counseling;
- Take advantage of “free access” and free trial service offers through major credit reporting agencies;
- Claim your free, up-to-date credit report from each major credit bureau every year through AnnualCreditReport.com;
Wish your credit score didn’t have to matter at all? Get your auto financing preapproval through Suburban Auto Finance today and it won’t! We offer outstanding Guaranteed Credit Approval for all, regardless of anyone’s credit score, and will make sure you new financing is well within your strict budget!
If you are looking for the best in auto financing, no matter what your current credit situation is, choose Suburban Auto Finance and learn how we can help you get back behind the wheel in no time. At Suburban Auto Finance, we understand everyone deserves the independence of having a reliable vehicle, and our mission is to work as hard as we can to make that happens for you.