Address Any Errors On Your Report

The first thing you should know about credit scores is that there are several credit scores available. The score you get from one credit reporting company is probably going to be different than the score you get from another company. Secondly, you should know that your credit score is directly linked with your credit report.

Credit scores are determined by what is on your credit report. Typically, credit scores range 300 to 550 (poor) to 740 to 850 (excellent). For decades, the FICO score has been the industry standard for credit scores, with the majority of lenders (including auto loan lenders) using FICO scores to determine the risk of giving you a loan or credit line. True to the larger world of credit scores, you don't have just one FICO score. This is because different types of lenders value different score factors more than others. FICO scores act as predictors of your future credit-related behavior.

For example, your FICO score will give potential lenders an idea of how likely you are to pay your bills on time. 1. The types of credit in use. 2. The amount you owe. 3. Your credit payment history. 4. The length of your credit history. 5. Any new credit.

When a potential auto loan lender is looking at your credit score, they are probably evaluating a FICO score that is weighted towards auto loans. This means that items on your credit report relating to auto loans are factored into the score more than other items. While some lenders may look at other credit scores besides a FICO score, most non-FICO credit scores are considered educational credit scores. This is because the primary purpose of these types of credit scores is to inform you (the consumer) about your credit score, rather than inform lenders or creditors.

Most credit scores are based on your credit report using very similar factors as those used to determine FICO scores. While these types of credit scores are not official FICO scores, they can still provide value to you by giving you a basic idea of where your credit stands. Per the FCRA, each of these companies must provide you with a free annual credit report. Of course, you can also obtain additional services such as identity theft monitoring for nominal fees.

In addition to getting your credit report from one of the Big 3 bureaus, you can order a credit report from one of several third-party credit report providers. Like the big-name agencies, many of these companies offset their service by offering other services or products you can purchase, such as identity theft protection or credit fraud alerts.

It is important to note that credit reports offered by third-party companies are usually obtained through one (or all) of the Big 3 bureaus. It is always a good idea to check your credit report and score before shopping for an auto loan. Address any errors on your report. Take actions to improve your credit score (if necessary).

Get a better idea of the rates you can get. Have leverage when a lender offers you an auto loan that doesn't meet your expectations. Your credit is huge when it comes to getting an auto loan. Remember to stay on top of it and use it as a tool to your benefit.

5. Here’s how to keep tabs on your score. While you can’t know all of your scores, you can keep careful track of your overall creditworthiness and shape your behavior to improve your credit. Your best option: “Track any one of your scores over time.” Gonzalez advised. “Knowing whether your score is improving or declining is very telling to your overall financial health.” How to know if you are tracking the same score, Check the same service each month instead of switching around from site to site and getting confused.

If you see a sudden, unexpected change, pull your credit report to see what’s going on and check the scoring site to find out if they recently changed their model. Focusing on one credit scoring model will give you a pretty clear idea of where you stand overall. “If you’re rated ‘good’ in one model, it should be ‘good’ for most other models, too,” according to Hardeman. Finally, focus on behaviors you can control, like paying all of your bills on time and checking your credit report for mistakes. Follow these simple tips for improving your score, (bonus tips here on how to do so without a credit card) and you should bring up your number on all scoring models — even the ones you can’t see.

They also can notify you if they discover that your email address has been exposed in another company’s public data breach. Communications & Monitoring on the Credit Karma site (or hit the Settings icon in the app). Ensure “Credit Monitoring” is checked to get the emails. Note that, while Credit Karma does display credit score numbers, this score is calculated using the VantageScore model.

Most lenders actually use the FICO score model—and there are even different FICO score models used for different types of credit—so the actual numerical score your lender sees will be different. This service is completely free. Credit Karma makes money through using your credit score to recommend credit cards and loans you might want to apply for.

But you never have to apply for anything here. Experian doesn’t make its data available on Credit Karma, but it does operate its own free credit score website. Apps for iPhone and Android are also available. Warning: Experian attempts to use this free service to upsell you. They want to sell you features like an updated report every single day and the ability to see all three credit reports in a single place. However, you do not have to spend any money to use this service.