What Is An Auto Credit Score?

Most people don’t know their credit score has no impact on qualifying for a car loan. Instead, it’s what’s known as an Auto Industry Option Score, which we call an Auto Score on SmartCredit.com.  The Auto Score is usually calculated by FICO exclusively for auto lenders to determine your loan qualification, down payment, and interest rate.

Almost 90 percent of auto lenders base their lending decision on your Auto Score. It’s calculated primarily on your previous auto loan history and not your overall credit. To that end, you’d be surprised how many people can get a car loan and not a credit card.

Do you know your Auto Score? Visit here to see your updated Auto Score online now.

Many lenders are willing to approve auto loans for those with a less than desirable Auto Score. Probably because studies show people with poor credit histories generally keep their auto loan payments in pretty good shape. Even while they let their other credit go unattended in one way or another.

Because lenders are more likely to use your Auto Score instead of your credit score, getting an auto loan can be a great way to build or restore your credit. Make those payments on time and begin to build up a positive credit history.

The best way to track your Auto Score is by using SmartCredit.com.® You’ll get access to your Auto Score any time at no additional charge.  This score is based, in large part, on the following credit report factors, which FICO also uses in their auto score:

• An auto loan or lease sent to collections
• Any late payments on an auto loan or lease
• An auto loan or lease settled for less than owed
• A repossession by the lender
• Previous two-year overall credit

SmartCredit’s Auto Score range is between 350 and 850:

How to best prepare for an auto loan application?

Make sure your credit report is the best it should be before you apply for an auto loan.  Use SmartCredit® to fix errors, get goodwill corrections and settle debts.  Our Action Buttons make it fast and easy.

Being proactive with your credit not only improves your credit score but positively impacts your Auto Score, too – especially if you take these actions on your current or past auto loans.

Do you know your Auto Score? Visit here to see your updated Auto Score online now.