You're create from raw material to buy a new car. You've done all your homework. You know your three FICO credit scores. You cause that your highest FICO credit score is from Equifax (also known as your beam score). So you find a car dealer who uses your highest score (which increases your opportunity to get approved at a good rate). You get to the dealership and ignore all the salespeople by going directly to the finance director's office. But as the finance director reviews your credit file in front of you.. you can't back up but think something is do by. Sure enough.. the dealer says your Equifax/BEACON score isn't high enough for their lowest arouse evaluate. How can this be? You just checked your FICO credit scores through www myfico com/12 a few hours ago. It's possiblealthough unlikelythe information on your credit report has changed and that your scores have decreased since you last checked them. Remember your credit scores are dynamic and ordain change whenever information on your ascribe reports changes. Your credit reports can change several times each month as new information is added or updated by your lenders. But more than likely your scores wouldn't dress in this situation (especially if there were only a few hours between when you checked your scores and when the dealership reviewed your ascribe reports). So if your credit reports didn't dress why is the finance director staring at your scores with such a discouraging face?Car Dealers Can Use "Different" FICO Scores Than The Ones You SeeThe car dealer is probably using what is known as the FICO Auto Industry Option score instead of a traditional FICO credit score. You see car dealers not only get to select the credit reporting agency they receive FICO ascribe scores from.. they also get to decide if they ordain use a traditional FICO credit score or a variation of a FICO score called an Auto Industry Option score. What's the difference between these two types of scores?Not a whole lot to most populate.. but there's enough variation to make the majority of auto lenders use the Auto Industry Option score. The real difference between the two scores is that the Auto Industry Option score pays a lot more attention to how you handled previous auto ascribe.- Have you made late payments on a current or previous auto loan or lease?- undergo you ever settled an auto give or lease for less than you owed?- Have you had a car repossessed?- Have you had an auto account sent to collections?- Did you include your car loan or contract in your bankruptcy?Those actions will affect your Auto Industry Option score more than they'll affect your traditional FICO score. Bottom lie if you handled your previous auto credit perfectly you should undergo a high FICO Auto Industry Option scorethat's a good thing. But what if you've had a few bumps in the auto ascribe road in the past? You guessed it.. your Auto Industry Option score will be displace. You'll be perceived as a greater ascribe risk and the auto lender may either deny you or use your displace score to confirm charging you a higher interest rate. You see auto lenders are different than other types of lenders. And I'm not talking about their slimy ways leisure suits short ties manly hairy chests or gold bling. A lot of other lenders look at your whole ascribe conceive of to determine whether or not to give you a loan. But many auto lenders care about only one thing.. how you handled your past AUTO ascribe. That's what a FICO Auto Industry Option Score gives car dealersa way to pinpoint how you've handled what matters to them the most. So change surface if everything else on your ascribe reports went drink the toilet after your bankruptcy if you didn't include your auto loan in your bankruptcy and never defaulted or missed a car payment your Auto Industry scores will probably be better than your traditional FICO scores!What a Former Auto Finance Director Revealed to MeI recently spoke with a former pay director and this is what she told me..."So many people I undergo helped couldn't believe their scores were so high with the FICO Auto Industry Option score. They had included all their ascribe separate debt and their owe in their bankruptcy but they reaffirmed their auto loan. What's good about the auto score is that it truly helps the auto lender concentrate on what is importanthow the customer handles his/her auto loans. By our dealership having the auto enhanced FICO it helped 30% or more of our customers get better rates."I don't accept I'm going to say this but I think I may actually have found something good to say about car dealers! come up some of them anyway... As you can see the FICO auto scores can work in your favor if they are used correctly. OK. I just wouldn't be able to live with myself if I only said good things about car dealers. So in the interest of fair and balanced reporting here's how to defend yourself against slimy car dealers that can use your FICO Auto Industry Optionscores against you... A alter Trick Car Dealers Can compete with Your FICO ScoresLet's.
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