Credit score versus credit history?

Here's my dilemma. I have FICOs between 695 and 740, but I got my first (cosigned) loan 10 months ago.

Can I expect to get the auto loans advertised for people with my FICO scores, or am I going to get shafted with a "minimal credit history" or some line like that?

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  • 1 decade ago
    Favorite Answer

    The approval of an auto loan is 1 part credit history 1 part income.

    Regardless of what the credit score is, an uneducated buyer can get shafted on auto financing. The first thing that you want to do make a commitment that you are shopping for an auto loan. Once that commitment is made, you can visit with your local bank or credit union and see if you can even get qualified, and if so what your rate would be.

    Before that, you'll need to decide on the automobile. The year, make and model number and mileage are all going to be considered. In most cases, if you are looking to finance a used car, they will allow up to 115% of the appraised value listed in NADA. (Google N.A.D.A).

    This information needs to be provided to the bank, before they can determine whether or not you qualify. You just can't call a bank and ask for there rates, cause everything needs to be considered.

    Also, visit myfico.com, and download the free pdf. It has tons of information regarding the credit scoring system.

    Good luck, and happy hunting.

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  • 4 years ago

    It depends on the situation, but overall it will have a limited impact on your score compared to the length and quality of your payment history. Two of the relevent factors included in the score are the balance compared to the credit limit, and the total amount of credit available. The first is concerned with whether you have maxed out or near maxed out cards, you shouldn't. The second watches the total amount of credit available, and it generally shouldn't be more than you need. Don't sign up for a card at every store you shop at just because it gets you 10% off your purchase. But also don't panic and cancel cards or reduce limits, it helps to have those old accounts (longer history), and it could affect your outstanding balance to limit (the first factor mentioned). The overall available credit has a limited impact on your score, but it is important to keep in mind and a good reason not to open promotional cards. I am not sure if this directly answered your question, but my advice is to pay off the card as you are. You won't pay unnecessary interest or fees, and it keeps you from getting into credit trouble (it is surprising how easy it can happen). You have nothing meaningful to gain by maintaining a balance on the card. As far as other ways to improve your score, the most important thing is staying current and keep your accounts open long term. Since this is your first card, I assume you are youngerish, get more of your accounts in your name if possible, utilities, cell phone, car loan. I am not sure what other credit you have, but having just gotten your first card you are well on your way. Stay on top of it for a couple of years and you will have a decent credit score (say 720 - 750), then you may be looking to add a car loan, mortgage, etc. and will have the chance to get an excellent score in no time.

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  • Anonymous
    6 years ago

    For a very similar situation a found a great solution at: HTTP://HELP.IMMEDIATELOAN.NET

    RE Credit score versus credit history?

    Here's my dilemma. I have FICOs between 695 and 740, but I got my first (cosigned) loan 10 months ago.

    Can I expect to get the auto loans advertised for people with my FICO scores, or am I going to get shafted with a "minimal credit history" or some line like that?

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  • 1 decade ago

    The reality is that companies look for a longer history than 10 months. Generally they want 3 trade lines (Cars, Mortgages, Credit Cards etc.) that have been active for at least 3 years. I am surprised that they would give you a FICO score with only 10 months history. Good Luck

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  • 1 decade ago

    Expect the shaft if you don't have any substantial history of 2 years or more. You might get lucky though if you went to a big and crazy dealer (wackier the tv ads the better, especially at year-end closeout time).

    You can influence their decision by putting more money down. The lower the original loan-to-value ratio, the lower the risk of the loan.

    Definitely check out credit unions in your area. Many give consideration to people in your shoes. Again, propose a larger down payment to lower the risk an increase your odds.

    Good luck!

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  • Anonymous
    1 decade ago

    The auto loan if you qualify is based on your income and not credit score. A minimum wage earner can obtain a perfect credit score, but not qualify for auto loans advertised.

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  • Anonymous
    6 years ago

    This site can solve your problem very fast: http://www.CREDIT-COMPARE.NET

    RE:Credit score versus credit history?

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  • 6 years ago

    Get free rates

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