“Auto enhanced credit score?”, you ask. Yes, it’s true! The auto enhanced credit score exists. A lender will generate this score to find out your “auto loan worthiness”. The auto enhanced credit is is also very different from the FICO score. Quite often we get calls or emails from clients that are looking to get tradelines for the purpose of getting approved for an auto loan. We recently wrote about the many different credit scores available. Here, we discuss your auto enhanced FICO score, or any auto enhanced score for that matter (such as the Beacon auto enhanced score).
Before we talk about your credit score, let’s back up for a second…
If you’re looking at applying for an auto loan, consider getting a free credit report analysis. Our goal is to help clients while selling tradelines. We won’t irresponsibly sell tradelines to everybody regardless of whether or not tradelines would help achieve their goals. We want to make sure, first, that you make a wise decision when buying tradelines and proper credit report analysis followed by an appropriate tradeline recommendation is a very important link in this chain.
Okay, moving on to your auto enhanced credit score.
Most people, like you, are aware that you have a FICO score. And, you might even know the factors (payment history, the average age of accounts, etc.) that affect your FICO scores. You might be surprised to find out that there is a difference between standard FICO scores and “auto enhanced credit score”.
What is an auto-enhanced FICO credit score?
An auto-enhanced credit score is also called an enhanced beacon score. Lender’s calculate this score differently than FICO scores, and different factors impact the auto-enhanced scores.
affected by different things. To start, revolving accounts (like credit cards) have the largest impact on your FICO score. For the auto enhanced credit score, payment history on auto loans tends to play the largest part.
What does that mean for you when looking into purchasing tradelines?
Depending on the existence and quality of your previous auto loan or lease history, tradelines may or may not be beneficial. So, let’s just stop right there. If you talk to a tradeline company and without looking at your credit report they say “Yes, absolutely, adding tradelines will get you approved for an auto loan”, well… you now know they’re lying to you. You know this because it’s impossible to know if tradelines would work without looking at your report first. With that in mind, here are a few questions you should ask before adding tradelines to your credit report:
- Have you ever had an auto loan before?
- Do you have any late payments on your previous auto loans?
- Have you ever had your vehicle repossessed?
- Have you had an auto loan account sent to collections?
If you answered “yes” to at least one out of the last 3 questions, then you may or may not benefit from the authorized user tradelines. If any of the auto-related late payments, collections or repossessions happened within the last 6-8 months, tradelines are NOT the right option for you.
So, what can authorized user tradelines do for someone with an auto loan goal?
Authorized user tradelines can powerfully boost your FICO score because they represent a revolving account group. However, lender’s don’t weigh them heavily enough to overcome the negative impact of your negative auto history. In such situations, your money would be better spent on credit repair rather than tradeline purchase.
Updated on November 3, 2021.