Auto lenders don't score credit the same way mortgage lenders do. Most use an "auto-enhanced" FICO score that weighs prior auto loan history more heavily.
Tier pricing
Lenders sort applicants into tiers (super-prime, prime, near-prime, subprime, deep subprime). Each tier has its own rate and down-payment expectations. A jump of one tier can save thousands over a five-year loan.
What to check before applying
- Auto-loan-specific score (many free apps show it)
- Current utilization on cards
- Any recent late payments
- Payoff of prior auto loans
Pre-qualification vs. application
Many dealers and lenders offer soft-pull pre-qualification. Use it before you sit down at a desk.
