Understanding Your FICO Auto Score

A FICO score is the go-to source for most auto loan companies. In fact, a unique kind of FICO auto score has been specifically designed for vehicle loans. Finding your FICO auto score is fairly straightforward, and you can do it for free.

We’ll explain the most important things you need to know about the FICO score, including how to find your score and how to raise your score.

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What is a FICO Auto Score?

A basic FICO score measures how reliable you are at paying back debts. An auto loan FICO score specifically measures your ability to pay back auto loans.

The basic FICO and auto loan FICO scores use different credit scoring models. The base FICO score ranges from 300 to 850, but FICO auto scores range from 250 to 900.

The FICO auto score that lenders look at is measured using the 9 XT version of auto score measurement. This version is designed to take into account the past 30 months of credit behavior using data from TransUnion’s CreditVision system.

Five major factors contribute to this version of the FICO auto score:

Payment historyCredit utilization rateLength of credit historyMix of creditNew credit

Additionally, the FICO auto score prevents certain factors from hurting your credit score significantly.

For example, unpaid medical bills don’t incur as much of a penalty as other unpaid bills. Plus, paying off an account that was in collections no longer counts against your credit score.

How Do I Check My FICO Auto Score?

It’s always a good idea to check your FICO auto score before you take out a car loan. This will give you an idea of what you can expect in terms of loan terms and interest rates. Checking your FICO auto score is easy, and you can do so directly from FICO.

A one-time report from a single credit bureau, whether it’s Experian, TransUnion, or Equifax, costs about $20, though you can get a report from all three for $60. Because your credit score can differ slightly depending on the bureau, it’s best to get your credit score from multiple credit bureaus to get a clear picture of your scores across the board.

For example, imagine you have a credit score of around 665. TransUnion reports your score as 667, while Equifax reports it as 660. The TransUnion report would put you in the prime category, while the Equifax report would put you in the nonprime category. Most lenders don’t disclose what bureau they use to run credit reports.

Keep in mind that any single report you get from FICO will only be good for 30 days. These reports function as a snapshot of your credit at that moment, which changes continually based on your financial activities.

If you’re interested in constantly monitoring your credit, FICO offers subscriptions that let you stay on top of credit changes. All of FICO’s subscription plans include credit monitoring.

You can also get insights into how lenders view you, as well as a detailed analysis of your credit score, complete with a credit and payment history graph. These subscriptions may also come with features like identity theft insurance and identity restoration services.

What’s a Good FICO Score?

In general, a good credit score is a score of 670 or above. If you have good credit, you have the best chance of getting favorable loan terms. To get the lowest interest rates and the best loan terms possible, you’ll want to aim for a credit score in the excellent category (720 to 850).

If you don’t have a good credit score, some lenders may not work with you. While there are lenders that specialize in issuing loans to people with subprime or even deep subprime credit, the interest rate on these loans is usually very high. For example, deep subprime borrowers might secure an interest rate as high as 20 percent when they get a loan.

Can I Check My FICO Score for Free?

There are a few ways to check your credit score for free. Many banks, credit unions, and credit card issuers will offer free credit reports. Experian, for example, gives you a free FICO score as a part of its credit report service. AnnualCreditReport.com also lets you get a free report from the three major credit bureaus once a year.

How to Improve Your FICO Auto Score

Before you start applying for an auto loan, it’s best to get your FICO auto score as high as possible. Fortunately, there are a few ways to boost your score:

Pay Off Your Credit Cards

One of the quickest ways to improve your credit score is to pay down your credit card balances. This can be challenging if you’re on a tight budget, but not carrying credit card balances from one month to the next can do wonders for your overall credit score. Getting your balance to zero as soon as possible can help you build up your credit before getting a loan.

Pay More Than the Minimum

To maintain your credit score, you’re required to make a minimum payment on your credit card balance. But if you can afford to pay more than the minimum, you can improve your credit score. Paying more than the minimum shows lenders that you can comfortably pay off your credit card debt. You’ll also pay less interest when you pay it off faster.

Pay Off Collections

Debt collectors can be difficult to deal with, but paying off your collections is essential for boosting your credit score. Having debt in collections will almost certainly cause your credit score to decline, which can make it difficult to qualify for favorable auto loan terms.

Keep Your Credit Utilization Low

Every credit card has a limit. If you come close to that limit, your credit score may dip. Keeping your credit utilization low is a great way to improve your credit score before you get an auto loan. Generally speaking, using 30 percent or less of your allotted credit shows lenders that you’re a reliable borrower.

Finance & Insurance Editor

Elizabeth Rivelli is a freelance writer with more than three years of experience covering personal finance and insurance. She has extensive knowledge of various insurance lines, including car insurance and property insurance. Her byline has appeared in dozens of online finance publications, like The Balance, Investopedia, Reviews.com, Forbes, and Bankrate.