Credit reporting agencies have a credit report that is specifically tailored to auto loans. This auto loan specific credit report uses a different formula than a normal credit report. The auto loan specific credit report is available only to banks and credit agencies that give car loans and helps them decide how much of a risk you are.
The auto loan specific credit report looks at your credit history differently than a normal credit report. Because of this, you will have a different credit score on this credit check than on one done by a credit card company or done for you by the credit scoring company. The auto loan specific credit score will look at your history with car payments more than other things. So if you’ve gotten behind on bills before but have kept up to date on your car payment, you might be pleasantly surprised by the auto loan specific score.
So when you follow our advice and check your credit report before applying for a loan and the dealer tells you your score is different than what you saw on your credit check, don’t storm out! He might not be a lying, cheating, no-good swindler. He probably requested the auto loan specific credit check.
Image via fundershomeloans.
