When it comes time to crunch numbers, you’re told that your interest rate is 9%. Of course you blow a head gasket (no pun intended of course) because you’re thinking with your 710 credit score your rate should be in the 4%-5% range.
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 your salesperson about your 710 credit score that you have.
The salesperson in turn tells you that your score isn’t a 710 it’s a 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 free online credit check Terre Haute 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 free online credit check Terre Haute from an online credit reporting service the other day. annual credit report site Well the answer is quite obvious if you sit down and think with a little rational. You went online to free online credit check Terre Haute 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. That being the case, do you think since the car dealership used a different free online credit check Terre Haute service to pull your credit that your score could be free online credit check Terre Haute 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 receive what I would call a generic credit score. online credit reports
After all, it’s a score based on your whole credit history. Meaning free online credit check Terre Haute it takes in effect how you’ve paid anything and everything you’ve had credit with; from auto loans, to mortgages, to credit card, to student free online credit check Terre Haute loans, to personal loans. If your credit file is deep free online credit check Terre Haute with all the above types of credit, and you had free online credit check Terre Haute 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.
When a car dealer pulls your credit they are pulling what’s called and Auto Finance Score. In other words, free online credit check Terre Haute the credit score that they get from one of the three credit reporting services (Equifax, Transunion, Experian), is an auto free online credit check Terre Haute finance score based more on your pervious auto loans. my free credit check So in the scenario above, if your credit file was perfect with all your creditors, but you had a 30 free online credit check Terre Haute late payment on a car free online credit check Terre Haute 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.
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