How to Read your Credit Score
Your credit score is an important part of figuring out what kind of auto financing loan you’ll be able to get. Understanding what the credit score means is the first step in trying to improve your credit score so that you can get the best possible auto financing credit options available.
A credit score is a three digit number. The most commonly used credit score is known as the “FICO” Score, computed by Fair, Isaac & Co. This is number is based on several factors, including your payment history, the amount you woe, the length of your credit history, your overall credit history, and the type of credit you have.
Contrary to popular believe, your payment history is only a portion of your credit score. While the exact formula for the criteria aren’t public knowledge, knowing the components can certainly help.
Understanding the different criteria will help you understand what you can do, apart from just paying your bills on time, to increase your credit score. When you get ready to buy a used car, make sure you take some time to look at your credit score, check it for problems, and see what you can do to improve it.
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