Dreaming of owning a suv check your ‘fico scores’ before applying an auto loan

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Dreaming of owning a SUV? Check your ‘FICO Scores’

before applying an Auto Loan


Most of the Most of the auto lenders auto lenders will look into will look into one of your one of your FICO® scores FICO® scores to determine to determine the rate they the rate they will offer you.will offer you.


What is FICO?What is FICO?

FICO, created by The Fair FICO, created by The Fair Isaac Corporation as the first Isaac Corporation as the first credit scoring system for a credit scoring system for a bank credit card in 1970, is the bank credit card in 1970, is the representation of your credit representation of your credit worthiness, i.e., your risk to worthiness, i.e., your risk to your auto lender. your auto lender.

If your score is less, you will If your score is less, you will not be fit for a loan. So, more not be fit for a loan. So, more your score, less risky you are. your score, less risky you are. That shows you will not run That shows you will not run away, but you will pay! away, but you will pay!


When your FICO gets affected?When your FICO gets affected?

There are few factors (by which you can Guess) There are few factors (by which you can Guess) affecting your Credit Score. (Source: wikipedia) affecting your Credit Score. (Source: wikipedia)

35% — Payment History: Late payments on bills, such 35% — Payment History: Late payments on bills, such as a mortgage, credit card or automobile loan, can cause as a mortgage, credit card or automobile loan, can cause a consumer’s FICO score to drop. Paying bills as agreed a consumer’s FICO score to drop. Paying bills as agreed over time will improve a consumer’s FICO score.over time will improve a consumer’s FICO score.

15% — Length of Credit History: As consumer’s credit 15% — Length of Credit History: As consumer’s credit history ages, assuming they pay their bills; it can have a history ages, assuming they pay their bills; it can have a positive impact on their FICO score.positive impact on their FICO score.


Cont… Cont… 30% — Credit Utilization: The ratio of current revolving 30% — Credit Utilization: The ratio of current revolving

debt (such as credit card balances) to the total available debt (such as credit card balances) to the total available revolving credit (credit limits). Consumers can improve revolving credit (credit limits). Consumers can improve their FICO scores by paying off debt and lowering their their FICO scores by paying off debt and lowering their utilization ratio. The closing of existing revolving utilization ratio. The closing of existing revolving accounts will typically adversely affect this ratio and accounts will typically adversely affect this ratio and therefore have a negative impact on their FICO score.therefore have a negative impact on their FICO score.

10% — Types of Credit Used: (installment, revolving, 10% — Types of Credit Used: (installment, revolving, consumer finance) – Consumers can benefit by having a consumer finance) – Consumers can benefit by having a history of managing different types of credit. history of managing different types of credit.


ContCont…

10% — Amount of 10% — Amount of credit obtained credit obtained recently: Multiple recently: Multiple credit inquiries for a credit inquiries for a consumer seeking to consumer seeking to open new credit, such open new credit, such as credit cards, retail as credit cards, retail store accounts, and store accounts, and personal loans, can personal loans, can hurt an individual’s hurt an individual’s score score

Factors affecting your Credit Score

35, 35%

30, 30%

15, 15%

10, 10%10, 10%

Payment History

Credit Utilization

Length of Credit History

Types of Credit Used

Amount of credit obtainedrecently

Factors Affecting Credit Score PrecentagePayment History 35Credit Utilization 30Length of Credit History 15Types of Credit Used 10Amount of credit obtained recently 10


To Err is Human Sometimes we do Sometimes we do

mistakes not unknowingly mistakes not unknowingly but well knowing them! We but well knowing them! We are aware of these things are aware of these things but we “Realize” it when a but we “Realize” it when a (bit) tough situation, like (bit) tough situation, like unable to pay your loan, unable to pay your loan, Repossession of the Repossession of the vehicle, late payment, loan vehicle, late payment, loan for higher interest rate, for higher interest rate, comes. This may seriously comes. This may seriously affect your Credit Score. affect your Credit Score.


About Auto Relief GroupAbout Auto Relief Group

Auto Relief Group offers Car ownership of their vehicle by working Auto Relief Group offers Car ownership of their vehicle by working directly with lenders to restructure Loan Modification service, we directly with lenders to restructure Loan Modification service, we assist car owners in renegotiating their car loan or lease, avoid assist car owners in renegotiating their car loan or lease, avoid repossession and maintain loans, extend terms or reduce repossession and maintain loans, extend terms or reduce payments.payments.We provide our clients with customized reports, expert advice and We provide our clients with customized reports, expert advice and negotiation assistance when restructuring their car loans.negotiation assistance when restructuring their car loans.

For more information on Auto Relief Group and its scope of services, For more information on Auto Relief Group and its scope of services,

Visit:Visit: http://www.autoreliefgroup.com Blog: Blog: http://www.autoreliefgroup.wordpress.comhttp://www.autoreliefgroup.wordpress.com

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Dreaming of owning a suv check your ‘fico scores’ before applying an auto loan

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