Credit scores are an essential part of car purchasing. A poor credit score can prevent you from buying the car you want. There are several credit agencies that can help you check your credit, including Equifax and TransUnion. Fortunately, there is a simple way to check your score. You can find out your score by visiting the websites of these agencies.
Experian
FICO Auto score is a credit score which focuses on the credit history of a consumer in auto-related areas. These scores are preferred by lenders as they reflect both the general credit history and specific details of an individual's auto-related credit history. TransUnion, Equifax, Experian have the FICO auto score.
Although the scores may differ in some ways, they all provide the same information. FICO 8 & FICO 9 are both the most used FICO scores. FICO 8 (the industry standard) is used by many auto lenders as well as credit card companies. FICO 9, the latest version for generic FICO scores, is currently used by Wells Fargo. Mortgage providers often use TransUnion scores, although it is not as popular.
TransUnion
TransUnion's auto credit score focuses primarily on auto loan approval decisions. The company claims it is the only score of its kind in the market. It takes alternative and popular credit data and generates an auto score for each individual. This score is used by subprime credit card firms and auto lenders to make lending decisions. It predicts, among other things, whether an individual will default on auto loans or credit cards.
The score is based upon many factors and is generally between 300-850. The score does not automatically qualify you for every loan. However, it will help them to understand their credit situation better and be eligible for loans.
Equifax
The first step in your search for an auto loan is to check your credit score. Equifax (Experian), TransUnion and Experian are the three major credit bureaus. All three of these credit bureaus report your credit score. Each method of calculating your score is different. Your credit score is what lenders use to decide if you're a candidate for auto loans.
Your FICO(r), auto score is a report which gives lenders an idea about your ability to pay for the car you want. It features a scale of 250 to 900, and the higher your score, the less risk you are to default on your auto loan. It also increases your chances of qualifying for financing and receiving a better interest rate. However, credit scores are affected by other factors such as income and debt.
Wells Fargo
Wells Fargo, one of the most important financial institutions in the globe, is Wells Fargo. The company offers a vast array of services for its customers, including free FICO scores. These scores don't just belong to Wells Fargo. They can be derived from credit information from all three major credit bureaus.
The Wells Fargo network can help you get approved for a car loan. These dealers are not available on the Wells Fargo site. However, you can reach out to individual dealerships to inquire if they may be interested in working with you. Although it may take some time, you'll be able to see what dealerships offer you based off your credit history.