Auto Loans Use FICO’S Auto Enhanced Score

Auto Loans use FICO's Auto Enhanced Score

General Motors automobile mural (Photo credit: Toban Black)

Auto Loans Use FICO‘s Auto Enhanced Score

FICO has a separate scoring system for automobile loans. Auto loans use FICO’s Auto Enhanced Score.  There are different factors inputted for your FICO’s Auto Enhanced Score than are used for your regular FICO score.  yOur regular FICO score is known as your Classic FICO or Beacon score.

If you have no record of some type of installment loan history many auto dealers will tell you that a good FICO score is not enough.  Most banks and credit unions offer credit builder loans.  These are installment loans secured by your own CD that will help you to raise your credit score with a new type of installment credit at a very low cost.  There is no risk to the bank.

This optional loan rating service of FICO;s Auto Enhance Score is available only to automobile dealers or finance companies.  Consumers can’t purchase it on their own.  The extra components of FICO’s Auto Enhancd Score entail specific information on how you have previously managed your credit for automobiles.  If you have been particularly scrupulous about your auto loans you can expect a higher score when auto loans use FICO’s Auto Enhanced Score.  Of course it is also true that if you have mismanaged auto credit in the past it will be lower.  If you’ve ever had an auto repossession FICO’s Auto Enhanced Score will be a lot lower.

It is a good idea to start your auto buying negotiations by inquiring about what the dealer’s minimum score is. What kind of score you will need to get the best rate?

Ask about Other Factors for FICO’s Auto Enhanced Score

You can also ask if there are other factors you should know about that are considered in the loan application process.  Now go to and get your scores.  There is no reduction in your score when you do a soft pull on your own.  You don’t want unnecessary pulls on your score by third parties because you can be penalized somewhat for that.  If your score turns out to be in the ballpark you can then have the dealer pull FICO’s Auto Enhanced Score.  If  it’s higher than what you have, don’t say anything.  If it’s lower you can show him what you have and see if he has the freedom to go ahead and use the classic FICO as an option.  This will also protect you from any underhanded tactics such as classifying you for higher interest rates than you really deserve.  Unfortunately there are unscrupulous auto dealers who will take advantage of the “spread” between higher and lower interest rates to enrich themselves.

Best Practice of All…

Get your financing pre-approved by your bank or credit union before you go auto shopping.

Now you can focus on choosing the right car for you instead of worrying about the loan’s approval and interest on the financing.
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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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