A good FICO Auto Score 3 generally falls in the 660–719 range, according to The Credit People. This industry-specific score (range 250–900) indicates to lenders that you are a lower-risk borrower, allowing you to secure competitive interest rates and better loan terms compared to lower, "fair" scores, note The Credit People and Investopedia.
There's no minimum credit score required to get an auto loan. However, a credit score of 661 or above—considered a prime VantageScore® credit score—will generally improve your chances of getting approved with favorable terms. For the FICO® Score Θ , a good credit score is 670 or higher.
FICO Auto Scores typically range from 250 to 900, unlike the standard FICO range of 300 to 850. Dealerships and lenders use these scores to better predict how likely you are to repay an auto loan.
FICO auto scores and base FICO scores use the same information from individuals' credit reports but, as mentioned, the auto score model applies different weightings. For example, your history of auto loan payments will matter more in the calculation of your FICO auto score.
FICO® Auto Score 2: Experian provides this version of the FICO® Auto Score to auto lenders. FICO® Auto Score 5: Auto lenders can obtain this version of the FICO® Auto Score from TransUnion. FICO® Auto Score 4: Auto lenders can secure this version of the FICO® Auto Score from Equifax.
If your FICO scores differ from other credit scores you see, it's likely because the scores you're viewing were calculated using a different scoring version or model. Those versions may have different information from each other.
How to improve your FICO® Score
Types of FICO scores
Here are other common FICO score versions and what they're used for: Credit card companies: FICO Score 3 and 9; FICO Bankcard Scores 2, 4, 5, 8 and 9. Auto lenders: FICO Auto Scores 2, 4, 5, 8 and 9. Mortgage lenders: FICO Scores 2, 4 and 5.
It's partly true: most negative items like late payments and collections are removed from your credit report after about seven years, but the underlying debt often still exists, and bankruptcies (Chapter 7) last 10 years, so your credit isn't entirely "clear" but mostly refreshed from old negatives. The 7-year clock starts from the date of the original delinquency, not when you paid it off or sent to collections, and the debt itself can still be pursued by collectors.
FICO Score
The FICO scoring model is credit bureau-specific, so different credit bureaus may have slightly different information about an individual, leading to a different score.
For years, dealerships have been using a tactic called a “four square”—a sheet of paper divided into four boxes where the salesperson will write down your trade value, the purchase price of the vehicle you're buying, your down payment, and your monthly payment.
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For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
The best times to buy a car are the end of the year (especially December) for big discounts on outgoing models and hitting quotas, fall (Sept-Nov) to clear old inventory as new models arrive, end of the month/quarter for sales staff to meet goals, and specific holidays like Black Friday; Tuesdays and Wednesdays are often better days due to fewer crowds, while late January offers good deals with less holiday shopping competition.
VantageScore weighs payment history more heavily than FICO. For example, payment history composes 40% of Vantagescore 3.0 while it makes up only 35% of FICO Score 8. Depending on your credit behavior and how timely you make your payments, your scores could vary.
VantageScore 3.0 is one of the most widely used credit scoring models. Lenders that use VantageScore 3.0 can include, but are not limited to: Banks and other financial institutions: These entities may look at your VantageScore as part of the application process of opening a new bank account or line of credit.