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What you need to know about your credit scores before applying for bad credit car loans

Before applying

Credit-challenged applicants sometimes don’t know what their credit scores are even before applying for bad credit auto loans.

At Auto Credit Express we’ve seen this happen because for the past ten years we’ve been helping buyers with poor credit find bad credit auto sales dealers. Our websites also explain subprime auto lenders and bankruptcy as well as today’s topic: understanding credit scores to determine if you really need poor credit car loans.

Know the score

Before applying for a car loan, you should order a credit report and credit score from each of the credit bureaus (Equifax, Experian, and TransUnion). The first yearly report from each is free and you go to www.annualcreditreport.com to order them, although you’ll need to pay for each of your credit scores.

You can simplify the process by visiting sites such as www.FreeScore360.com where, for a fee, you can receive all three reports and all three credit scores at the same time.

Credit score differences

All three bureaus use a version of the FICO score. Equifax calls it a BEACON score, Experian calls theirs the Experian/Fair Isaac Risk Model and at TransUnion it’s known as an EMPIRICA score.

The bureaus also share a new score that they jointly developed called VantageScore.

In a perfect world, all three VantageScore or FICO scores would be the same. But they aren’t. That’s because the information that appears in each of your credit reports is usually different.

Report differences

Unless your credit file is fairly new, there are usually differences between your credit reports because:

1.    Some creditors report to only one or two of the bureaus.
2.    It may take one bureau longer to report a new creditor
3.    It may take one bureau longer to remove an old credit file
4.    One, two, or even all three may be reporting inaccurate or incomplete credit information

These reasons, plus others, can result in credit score differences. Additionally, car dealers typically use an “auto enhanced” score that adds weight to car loan performance – meaning the score they receive could also be different.

Credit score ranges

With credit scores in hand it’s time to see where yours fit in and what kind of car loan you might qualify for.

This is how Experian classifies the two types of credit scores:

Super prime:
FICO Score: 740 plus
VantageScore: 801-990

Prime:
FICO Score: 680-739
VantageScore: 701-800

Non-prime:
FICO Score: 620-679
VantageScore: 641-700

Subprime:
FICO Score: 550-619
VantageScore: 601-640

Deep subprime:
FICO Score: less than 550
VantageScore: 501-600

Typically, super prime is the best of the best, prime is excellent and near prime is fair credit. If you fall into either the subprime or deep subprime category, you’ll probably need to apply for a problem credit auto loan.

The Bottom Line

Know your credit scores beforehand and you’ll know which type of car loan you need to apply for.

If you have bad car credit, you should know that Auto Credit Express specializes in placing credit-challenged applicants with dealers that can give them their best chance at getting approved for poor credit car loans.

So if you’re ready to take that first step in improving your auto credit, you can begin now by filling out our online auto loans application.

The Service Contract Industry Council offers tips on purchasing an extended auto warranty for any car loan including terrible credit auto loans

Answering your questions

People with bad credit sometimes ask us about auto service contracts they can get from dealers that specialize in bad credit auto sales.

We can usually help them out with these questions because for the last twenty years we’ve been working with them here at Auto Credit Express. Answering this and other questions regarding issues such as repossession and buy and pay here dealers are a big reason we created our web site: so individuals in a wide variety of credit situations can use it to research those topics as well as today’s – what to ask about auto service contracts when financing a bad credit car.

SCIC

Recently, the Service Contract Industry Council issued a press release that contained some valuable information for consumers thinking of purchasing an extended warranty (really a service contract) for a new or used car. Here are some excerpts from it:

Consumers Obligations:

•    Read the contract provisions carefully and understand all coverage and exclusions
•    Keep detailed records, including contract paperwork, receipts, and maintenance records
•    Adhere to all manufacturer’s recommendations for routine maintenance, such as oil and spark plug changes.  Failure to do so could void the contract.
•    Identify the name of the service contract provider on the contract.  If a contract does not list an administrator’s contact

information, contact your state Department of Insurance or the Better Business Bureau to determine if the company is authorized to do business in your state.
•    Check if the plan’s administrator is a member of the Service Contract Industry Council (www.go-scic.com)

Consumer Tips:

•    Most service contracts cover normal wear-and-tear and may fill in coverage gaps in the manufacturer’s warranty for up to 7 years and/or 100,000 miles
•    In many states, service contracts come with a “free look” period, usually 30 days.  If a consumer believes they acted impetuously, the contract can be returned for a full refund during this period.
•    Do not buy a service contract if the provider will not supply you with a copy of the contract terms and conditions prior to purchase.
•    Be alert to service contract providers who use unsolicited mass marketing techniques, such as direct mail and telemarketing (e.g. “robo-calls”).

The Bottom Line

Here at Auto Credit Express we want you to successfully complete your bad credit auto loan. By purchasing an extended warranty when it makes sense and by following the tips offered by the Service Contract Industry Council you’ll have a better chance at making that happen.

You should also know know that at Auto Credit Express we specialize in matching applicants with bad auto credit to dealers that can offer them their best chance at getting approved for no credit auto loans.

So if you’re ready to reestablish your car credit, you can start now by filling out our online car loans bad credit application.

The Service Contract Industry Council offers tips on purchasing an extended auto warranty for any car loan including terrible credit auto loans

Answering your questions

People with bad credit sometimes ask us about auto service contracts they can get from dealers that specialize in bad credit auto sales.

We can usually help them out with these questions because for the last twenty years we’ve been working with them here at Auto Credit Express. Answering this and other questions regarding issues such as repossession and buy and pay here dealers are a big reason we created our web site: so individuals in a wide variety of credit situations can use it to research those topics as well as today’s – what to ask about auto service contracts when financing a bad credit car.

SCIC

Recently, the Service Contract Industry Council issued a press release that contained some valuable information for consumers thinking of purchasing an extended warranty (really a service contract) for a new or used car. Here are some excerpts from it:

Consumers Obligations:

•    Read the contract provisions carefully and understand all coverage and exclusions
•    Keep detailed records, including contract paperwork, receipts, and maintenance records
•    Adhere to all manufacturer’s recommendations for routine maintenance, such as oil and spark plug changes.  Failure to do so could void the contract.
•    Identify the name of the service contract provider on the contract.  If a contract does not list an administrator’s contact

information, contact your state Department of Insurance or the Better Business Bureau to determine if the company is authorized to do business in your state.
•    Check if the plan’s administrator is a member of the Service Contract Industry Council (www.go-scic.com)

Consumer Tips:

•    Most service contracts cover normal wear-and-tear and may fill in coverage gaps in the manufacturer’s warranty for up to 7 years and/or 100,000 miles
•    In many states, service contracts come with a “free look” period, usually 30 days.  If a consumer believes they acted impetuously, the contract can be returned for a full refund during this period.
•    Do not buy a service contract if the provider will not supply you with a copy of the contract terms and conditions prior to purchase.
•    Be alert to service contract providers who use unsolicited mass marketing techniques, such as direct mail and telemarketing (e.g. “robo-calls”).

The Bottom Line

Here at Auto Credit Express we want you to successfully complete your bad credit auto loan. By purchasing an extended warranty when it makes sense and by following the tips offered by the Service Contract Industry Council you’ll have a better chance at making that happen.

You should also know know that at Auto Credit Express we specialize in matching applicants with bad auto credit to dealers that can offer them their best chance at getting approved for no credit auto loans.

So if you’re ready to reestablish your car credit, you can start now by filling out our online car loans bad credit application.