Start improving your FICO credit score by making sure it’s error-free: a guide for military men and women.
By Tom Kline, Controller, Virginia car dealer RK Auto Group (RK Buick, RK Chevrolet, RK Subaru, RK Scion, RK Toyota)
A strong FICO credit score gets you the best financing when buying used cars.
One of the factors that lenders use when determining whether to grant a loan when buying your next POV (Privately Owned Vehicle) is your FICO credit score, otherwise known as your auto loan credit score. This score, maintained by the 3 leading credit reporting agencies (CRAs), reveals if you (the borrower) pay your debts (credit card, car payment, etc.) in a timely fashion. (For more, see What is a credit score? from Virginia car dealer RK Auto Group.)
Military borrowers – know your auto loan credit score before you start shopping for, and buying used cars.
It’s true for all, no matter your MOS (Military Occupational Specialty): credit scores affect your purchasing power. How do you make sure that your FICO credit score is correct?
Consumer reports are regulated under the Fair Credit Reporting Act (FCRA). Recent amendments to this law give additional responsibilities to the CRAs and creditors who provide information for credit reports. One key provision is that all consumers may obtain one free credit report a year. You can obtain your free report by calling 877-322-8228, visiting www.annualcreditreport.com, or writing to the Annual Credit Report Request Service, P.O. Box 105283, Atlanta, GA 30348-5283.
If you find a mistake on your credit report, self help credit repair wisdom says fix it immediately.
You can follow one of several routes to correct a low FICO or auto loan credit score:
- Smart military men and women engage in self help credit repair ASAP. First contact the CRA which reported the mistake in writing. The CRA is required to investigate within 30 days. If something is changed by the investigation, they are required to give you written results and a free copy of your revised credit report.
- Once you have contacted the CRA, the CRA should contact the creditor who provided faulty information to the CRA. The creditor is responsible to provide the CRA with correct information.
- If you believe that your low auto loan credit score is due to fraud, report it to the FTC, which will investigate for you. Visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357).
Whether you’re buying used cars, motorcycles, or major appliances, a strong auto loan credit score will land you lower interest rates.
An auto loan credit score is the primary factor used by car dealers, banks and finance companies in deciding the terms of a loan, or even whether to give one. Check your credit score at least once a year, and quickly correct errors to ensure you get the best car for your budget. If your FICO credit score is low, this Financing Program offered by Virginia car dealer RK Auto Group can help raise it. See more self help credit repair tips.
Tom Kline is Controller of Virginia car dealer RK Auto Group (RK Buick, RK Chevrolet, RK Subaru, RK Scion and RK Toyota). RK Chevrolet is the recipient of Chevrolet Motor Division’s coveted Service Supremacy Award four years in a row. This is an award which less than 400 of the nation's 5,000 Chevrolet dealers have won. RK Auto Group has been included in the Ward’s Auto list of top 500 U.S. car dealers, and has received the prestigious "Genuine Leaders Award" for excellence in sales, service, and customer satisfaction. The dedication of each employee at RK Chevrolet, RK Buick, RK Subaru, RK Scion and RK Toyota made these awards possible.