CONSUMER ALERT: Be aware that when you’re purchasing a vehicle that a completely different credit score is being used. The base FICO score ranges from 300 to 850, but FICO Auto Scores range from 250 to 900. Five major factors contribute to the FICO auto score and requirements to get the best loan :
Payment history – No negative info in last 30 months.
Credit utilization rate – Credit card balances under 10%.
Length of credit history – Established credit for 30 months.
Mix of credit – Already have 1 Loan and 2 Credit Cards established.
New Credit – No recent inquiries, applying or pulling credit.
In general, a good credit score is a score of 670 or above. If you have good credit, you have the best chance of getting favorable loan terms. To get the lowest interest rates and the best loan terms possible, you’ll want to aim for a credit score in the excellent category (720 to 850).
If your credit score below a 720, or if you’ve have had negative info report in the last 30 months, your credit card balances are over 10% of the limit, you don’t currently have 1 loan and 2 credit cards open and in use, It’s not advisable to attempt to purchase a vehicle.
EditMyCredit offers FREE Credit Counseling to help you meet these requirements ASAP so you can purchase a car! If you need help, Schedule a FREE Credit Counseling session with us here:https://calendly.com/editmycredit/30min
* Chaz Knight is a Consumer Advocate based in Dallas Texas and the CEO of www.EditMyCredit.net. Over the last 20 years he has helped thousands of consumers improve their credit to purchase homes, purchase vehicles and start businesses.
