Author: Williams Orchard

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Up for an Auto Loan? Watch your FICO Score By Williams Orchard

  in Finances | Published 2016-04-28 02:15:43 | 128 Reads | Unrated

Summary

Want to buy a car? Be smart and review your FICO Score before applying for an auto loan. If you have a good FICO score, you will be able to buy a car easily.

Full Content

If adventure and exploring are synonymous to you, venture into a brand new experience of living on the edge. How about getting a new car to follow endless roads and exploring new places? Sounds good? Then don’t wait for your savings to go up, just get an auto loan.

Before getting an auto loan, did you check FICO Score? Well, some of you may be new to it while some may be well aware. In a layman’s language, FICO= First I(eye) Credit Overall. It means first have a look at your FICO Score to know your cre

dit situation. It will be easy for you to get an auto loan with a good FICO Score.

A good score will get you easy auto loan with a low rate of interest and low monthly payments. So, instead of first eyeing your dream car, shift your attention to FICO Score. It is divided into five categories. The importance of each factor depends on the information which is provided in your credit report. When there is a change in information, the score also changes. The five categories in determining the FICO Score is mentioned as under:

30% - Amounts Owed

Factors such as monthly loan payments, amount owed across different types of accounts are covered under this heading.

10% - New Credit

Consumer can maintain different types of credits such as mortgage loan, credit card debts, personal loan etc.

15% - Length of Credit History

Factors like age of your oldest credit account, age of your newest credit account, duration of usage of auto loans or credit cards accounts.

10% - Credit Mix

Good credit mix depends on how you manage your different accounts (i.e.) revolving accounts, loan accounts, open accounts, etc.

35% - Payment History

Factors such as bankruptcy, late payments, repossession cause a major effect on the score.

Don’t have a good FICO Score? Let’s fix it with these easy tips:

>>Make timely payment of your bills.

>>A credit counselor is always there to help you out.

>>Try to reduce the amount of debt you owe.

>>List down all your accounts and the amount you owe. After studying the numbers, come up with a payment plan.

>>Credit cards are a big concern which can affect your score directly or indirectly (e.g. Balances should be kept low on credit cards to increase your score).

>>Don't apply for a number of new credit cards that you don't need, just to increase your available credit.

>>A closed account is also shown in your credit report. So closing an account to improve your credit score is not a good option.

These easy tips would guide you to improve your FICO Score. Building your credit score takes patience but a good FICO score will help you obtain an auto loan easily.

Want to buy a car in California? Are you worried about your FICO score? Put all your worries to rest because bad credit preapproved auto financing is here to help you. Obtain California bad credit auto loan and bring home a car easily.

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About the Author

Williams Orchard as a professional writer shares his experience of auto finance and insurance through his articles. His articles are widely appreciated by people for explicit writing and detailed information that is easily understandable to all.