Credit reference Lexington

When you ask your salesperson why the interest rate is so high, you’re told that the rate is based on your credit score. Of course you respond back telling credit reference Lexington your salesperson about your 710 credit credit reference Lexington score that you have. The salesperson in turn tells you that your score isn’t a 710 it’s a credit reference Lexington 650! Now a 60 point swing in a credit report can equate to several points in an interest rate. It could be the difference between a 5% rate versus a credit reference Lexington 9% rate (or more). How much would that cost you in finance charges (that scenario could be my next Hub)? But the question that you have running around in your head that you want answered is why the 60 point swing? Your argument is you just got your credit score from an online credit reporting service the other day. Well the answer is quite obvious if you sit down and think with a little rational. You went online to some www.yourcreditscore.com web site and got your credit score. When you went into the car dealership, and they pulled your credit they didn’t go to that same site. credit report information That being the case, do you think since the car dealership used a different service to pull your credit reference Lexington credit that your score could be different? You would think it should be the same or worst case scenario close. When you go online and have your credit pulled you’ll credit reference Lexington receive what I would call a generic credit score. After all, it’s credit reference Lexington a score based on your whole credit history. Meaning it takes in effect how you’ve paid anything and everything you’ve had credit with; from credit reference Lexington auto loans, to mortgages, to credit card, to student loans, to personal loans. If your credit file is deep with all the above types of credit reference Lexington credit, and you had a 30 day late payment on a car loan your overall credit score wouldn’t be tarnished much assuming that everything else on there was perfect. free annual credit report gov When a car dealer pulls your credit they are pulling what’s called and Auto Finance Score. In other words, the credit score that they get from one of the three credit reporting services (Equifax, Transunion, Experian), is an auto finance score based more on your pervious auto loans. So credit reference Lexington in the scenario above, if your credit file was perfect with all your creditors, but you had a credit reference Lexington 30 late payment on a car loan your auto finance score will take a big hit. The bottom line is there are two different scoring systems.

When you go online you’re not getting an auto finance score. You’re getting an overall FICO score which is different than an auto finance score.

 Banks that make credit reference Lexington car loans want to know more about your pervious car credit than how you paid back a student loan. There are other factors that make up an auto finance score that are different than an overall FICO online credit report score, but since I’ve never worked for a credit reporting company I don’t know of the exact formula they use. Like I said earlier…don’t waste your time buying a credit report online if you’re getting ready to purchase a vehicle. credit card free credit report Let the car dealership pay for it by pulling your credit. Once they do, they will tell you (or show you) what your auto finance score is.

That’s the only score you need to know when purchasing a new credit reference Lexington or used vehicle. vote upvote credit reference Lexington downsharePrintflag Sign in or sign up and post using a hubpages account. Other product and company names shown may be trademarks of their respective owners.