FICO AUTO ENHANCED SCORE?

[DIYcredit]

HI,

     I've been researching auto loans and I've noticed the that the Fico Auto Enhanced range goes from 250-900.In comparison to the general Fico score I bought from Fico the most common range is 300-850.I know the Auto will put more weight on anything to do with auto loans.So when people have an  general Fico score of 785 or above [High Achievers] that it's only 300-850 range.I know that a  Fico score that goes  through any model could vary 20 or so points.I'm thinking 20 points could be quite a difference in the apr.Oh yeah I have a Honda auto loan paid on time,paid as agreed closed in 2012.

Does anyone know in general what the tiers and apr's for a [Honda,Toyota} Fico Auto Enhanced Model 250-900?

 Thanks,

      DIYcredit

12/15

FICO Score 8 TU-708  Good

FICO Auto   8 TU-700  Good

FICO Auto   4 TU-688  Good

[Anonymous]

My comments in blue below.

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@DIYcredit wrote:

HI,

     I've been researching auto loans and I've noticed the that the Fico Auto Enhanced range goes from 250-900.In comparison to the general Fico score I bought from Fico the most common range is 300-850.I know the Auto will put more weight on anything to do with auto loans.

So when people have an  general Fico score of 785 or above [High Achievers] that it's only 300-850 range.

The phrase High Achevers is arbitrary.  You could draw a line at 800, 760, 785, whatever.  Where the line becomes practical is a line that says "With this score or higher, 99.9% of all lenders will treat all scores the same as far as getting best rates for this particular loan type."  The line varies I imagine by year.  In 2007 I imagine the line may have been pretty low.  A year after the 2008 economic meltdown it might have been a lot higher.

Here's an interesting question, which might be on your mind, given the range difference between FICO 8 Classic (max 850) and FICO 8 Auto Enhanced (max 900).  Some lenders use FICO 8 Classic for their auto loans and some use FICO 8 Auto Enhanced.  If you took ten lenders at random who use Auto-E, would their cutoff for best rates be a little higher on average than Classic, given that AE has a max of 900?  I think I posed this question a while back and Thom Thumb may have weighed in (at least I think it was him) with some helpful statistical data that showed that the two scores have almost the same percentiles up through 770 or so.  That means that there would be no real reason for AE lenders to use a higher cutoff.  If lenders using classic tend to have a cutoff of 740 (say) then lenders using AE probably would too.

My guess is that the cutoff in 2015 probably is around 730-750 depending on the lender.  Maybe somebody here knows.  You can try Google to see if you can find the answer.

I know that a  Fico score that goes  through any model could vary 20 or so points.I'm thinking 20 points could be quite a difference in the apr.Oh yeah I have a Honda auto loan paid on time,paid as agreed closed in 2012.

Does anyone know in general what the tiers and apr's for a [Honda,Toyota} Fico Auto Enhanced Model 250-900?

 Thanks,

      DIYcredit

12/15

FICO Score 8 TU-708  Good

FICO Auto   8 TU-700  Good

FICO Auto   4 TU-688  Good

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[DIYcredit]

  Thanks.

[bdhu2001]

To get the very best rate, 720+.  However some will still give you a great rate at 690.   Your best option is to have an idea of the car your interested in and get pre-approved from your credit union, DCU, or someone else that gives great rates.

Remember, most auto places will run your credit through multiple places and they make more when they get you to agree to a higher interest than what you qualify for.

[Anonymous]

Thanks, BDHU.  I totally agree with your recoemdation about getting funding lined up first (via your bank or credit union) before you begin negotiating about price.  Otherwise the price just gets inflated to cover the "awesome financing deal" they offer you.  Plus people can sometimes get hurt with having 20 inquiries run if they don't all properly read as auto inquiries.

Do you have some sources for the 720 figure?  I hear that number sometimes mentioned, but sometimes that can be just the Echo Effect of the internet.  I found one guy who was an expert in the auto lending industry mention 740 (can't locate the web page now).

[bdhu2001]

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@Anonymous wrote:

Thanks, BDHU.  I totally agree with your recoemdation about getting funding lined up first (via your bank or credit union) before you begin negotiating about price.  Otherwise the price just gets inflated to cover the "awesome financing deal" they offer you.  Plus people can sometimes get hurt with having 20 inquiries run if they don't all properly read as auto inquiries.

Do you have some sources for the 720 figure?  I hear that number sometimes mentioned, but sometimes that can be just the Echo Effect of the internet.  I found one guy who was an expert in the auto lending industry mention 740 (can't locate the web page now).

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I got 720 from the Internet. However, my husband has worked in the industry for over 20+ years and he says the score for the best rate is 740+.

Thus, your 740 figure was probably from an industry specialist.