FICO Auto Industry Score

1. what is “FICO Auto industry option score”?  How is it different from your FICO score
2. What affects your score
3. How you can improve your credit

The FICO auto industry option score is a FICO score that some dealers request when they are checking your credit score.  This credit score shows your car payment history, reposessions, late payments anything related to your past car loans.  This score is usually lower.  You can not get a copy of this from the credit bureaus.  If a dealer or a car loan you secure elsewhere is using this and is instisting that your credit score is much lower and there is not real issues then continue to look.  Try online or your local credit union.  SOme dealers specialize in financing and have many different financial instiutions they work with.

For dealers who are using the FICO auto industry option score and you believe the interest rate you are being offered does not match past car payment history then you have options:

1. find a car loan online
2. check your local credit unions
3. a car dealer who specializes in financing

What affects your score

We have talked about what affects your FICO auto industry otption score.  There are additional items that affect this score and also affect your FICO score.  These are:

1. Cards are at or above 50% of maximum limit
2. bankruptcy
3. late payments on credit cards, home loans, student loans any obligations will negatively affect you
4. short time on job

There are over 100 variables but these are the big ones and ones you have some control over.
How you can improve your credit

There are several things you can do to improve your credit score.  This will help you obtain auto financing and secure a bettter car loan at better rates and terms.  SOme of the things you can do right now to improve your credit score are:

1. obtain your credit report and your credit score (will have to pay for credit score)
2. pay down your credit card debt to below 25 – 30 % of car maximum limit (you will see a significant improvement on your score and this is in your control)
3. make all your payments on time
4. If you started a new job try to hold off until you have been on the job for 6 – 9 months or longer. preferable a year
5. Close out accounts you are not using.  Having too much available credit can lower your credit score.  By obtaining a credit report you will see the open accounts.  Sometimes you close an account and it does not get recorded.  ANother good reason to review your credit report.
6. remove errors from your credit report.  errors occur on credit reports all the time.  Errors on your report could be causing you to pay sub prime rates when you could be paying prime rates.  So many good reasons to get your credit report.
7. Do not be afraid to get your credit report.  The only way to take positive steps in obtaining a good credit score is to look, cry if you have to and then brush yourself off and get to work.

This is a good start in helping you repair your own credit.  There are many places to help you if you require more help.  Check out who you are going to give private sensative information and find out all the fees they will charge.  These places do charge a fee just make sure they can really help you and not just help themselves to your hard earn money.