The Difference Between a FICO Score and Your Credit Report When Applying for an Auto Loan
When applying for no credit check car financing you’ll want to become familiar with the differences between your FICO score and your credit report. Each of these things are assessed differently by loan officers during the decision making process of whether to approve your auto loan or to decline your application.
Both are important factors during the decision making process of your loan application, so you’ll want to fully understand what you’re getting into, before actually applying for any auto loans, that way you can be sure to go into the process with your best foot forward.
What’s a credit report?
Your credit report is a collection of seven years worth of information and data that is used to calculate your FICO score. This information therein is derived from both public records and credit reporting agencies.
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Information in your credit report will include personal information, such as your full name, social security number, birth date, your address or addresses in the past seven years, automobiles that you have owned in the past seven years, employer information, utility company information, open lines of credit that you may have, any credit that you have applied for, and the bad part…if you owe any money to creditors.
What’s a FICO score and what can I do to bring my FICO score up, if it’s not high enough to be approved for an auto loan?
Your FICO score is a collection of credit date obtained and calculated from your credit report. The credit data from your credit report is then broken down into five categories, when calculating your FICO score.
These five categories are:
- The length of your credit history.
- Any new credit that you presently have.
- The different types of credit that you use.
- Your past payment history.
- Any amounts that you may owe to creditors.
The importance of each category being taken into consideration will vary from person to person. Also know, that even though your FICO score is only calculated from your credit report, that lenders will look at many things when making a lending decision.
What can I do to improve my credit report and my FICO score?
If you really want to improve your credit report and your FICO score to be improved for auto loans or bad credit auto loans, then start acting now by taking some simple steps immediately. These simple steps are so simple that some people may not even realize how they can affect their credit reports and FICO scores.
Steps to improving your FICO score and credit report:
- Simply paying your bills on time can greatly improve your credit rating.
- Only take out new credit when you need it and try not to take out too much credit all at one time; that looks “bad.”
- If you have anything “bad” on your credit report, like unpaid utility bills, unpaid credit card bills, unpaid doctors or hospital visit bills, then pay them off immediately, or at the very least start paying on them in the attempt to show good faith that you are going to pay them off completely in the future. Your creditors will report your payments to the credit reporting agencies and update your information.
Where do I go from here?
Visit Complete Auto Loans to learn more and get approved today! We offer auto loans for everyone, even bad credit auto loans for people with less than perfect credit! You’re guaranteed to be on the road with our credit specialists on your side!!