Lenders use this to determine if they will lend you money and at what interest rate. Take your good FICO score to car dealers and you'll be able to bargain for the best price, rate and terms.
5 Steps To Use A Fico Score To Get A Car Loan
1.
Get Your Fico Score, Also Known As Your Fair Isaac Score Each of the major credit reporting agencies produces a credit score. Equifax produces the FICO score. You may purchase your FICO score from MyFico.
Your entire credit history is taken into account when Equifax produces your FICO score. There may be a charge to obtain your score. The better you have been with money, the higher the score.
2. Print Your Score And Know What İt Means
Each FICO readout should come with a detailed explanation as to what your score means and whether it is considered good. Generally, each company grades on a separate scale, so it is handy to have this information.
3. Visit Various Loaning İnstitutions With Your İnformation And Find Out İf You Qualify
Banks, car dealers and online loan companies are all good options to get started with. Compare the rates for each, because what one company sees as a financially risky score another may find as perfectly acceptable.
4. Show Each Lender Your Fico Score
This is a large determinant in whether many lending institutions will offer you a loan. In many cases you can find out what kind of interest rate and terms you can get in a car loan by simply showing the lender your FICO score. This is ideal for those who want to minimize the number of credit checks they have on their credit reports.
5. Find A Car That Meets The Lender's Parameters
Most likely you will be preapproved for a loan and you can use this to base your car shopping on. This will be a maximum they will give you a loan for, which means it is the maximum price you can look for in a car.
You Might Also Like :: How to Get Loans With Low FICO Scores
Save for later
Found this helpful?
Pin this article to your Pinterest board and come back to it whenever you need a reminder.
Save to Pinterest
