New FICO Score to Make Things Easier for Potential Car Buyers

Posted: Saturday, July 2nd, 2016

Small financial mistakes can have a big impact on your FICO score, making it hard to get financing and impossible to take advantage of low rates when you do get approved. In response to these problems, FICO, in partnership with TransUnion, is revamping the way your credit score is calculated, which could make it much easier for shoppers to get the auto financing they need and enjoy lower interest rates as well.

What’s New with the FICO Credit Score?

Your FICO score is calculated using a complex algorithm that takes into account your income, the amount you owe, the number of open accounts you have, late payments, collections, and a number of other factors. They use this information to assign you a number that lenders use to determine your overall credit worthiness.

FICO’s new Auto Score 9 XT takes an expanded view of the data available to provide borrowers with a more balanced number. The new FICO score ignores collections accounts that have been paid, considers the consumer’s shopping trends for the preceding 30 months, looks at whether or not consumers are paying more than the minimum balance on outstanding accounts, and gives less weight to medical accounts that have gone into collections than consumer collections accounts.

All of these factors are said to combine to give automotive lenders a better view of a client’s current credit worthiness and will make it easier for buyers to get competitively low finance rates when the go to buy a car.

Let Green Light Auto Credit Help You Finance

At Greenlight Auto Credit, we know you’re more than your credit score. We’re here to help you get the financing you need, at a great, low rate regardless of your past credit history. We look at more than just your FICO number to help determine the best loan for you and can help walk you through the process from start to finish right here in the office.

See How the New FICO Can Help You Get the Car You Want

Contact Green Light Auto Credit at (800) 200-5551 for a branch near you and learn more about the new FICO score and how it can impact your next car buying experience.