Did You Know An Auto Loan Can Help Increase Your Credit Score Up To 100 Points!
Understanding your credit score can be difficult. In brief, credit scores are compiled by Fair Isaac Company (FICO). There are 5 factors that make up your credit score. They're each weighted differently depending on the effect on your total score. 35% of total score is Payment History. 30% of total score is Amounts Owed. 15% is Length of Credit History, 10% is New Credit, and remaining 10% is Types of Credit. An auto loan is a type of credit that can help your total credit score and potentially increasing it up to 100 points. New credit is 10% of total score which is crucial to understand the different types of credit checks and how they can affect you. Too many inquiries on your credit can negatively affect the FICO scoring. We offer tips on how to repair your credit when applying for approval through Car Loans in Houston. That is why it is important to choose a reputable program to ensure you receive the best auto loan to meet your needs.