Frequently Asked Questions about Credit


AutoNetUSA.com understands the importance of credit as it relates to purchasing and leasing automobiles. In fact, credit history is typically the most important factor that affects an individual’s vehicle purchase options and ultimate decision. If you are concerned about your credit or you are simply curious about your current credit score, we recommend that you consult our credit specialists. A proper evaluation of your credit will help you to determine the best path for you next vehicle purchase, while possibly saving you thousands!

What is a credit bureau? Is there more than one credit bureau? What does my credit score mean? What does it mean to have “A,” “B,” or “C” credit? Is it possible to improve my credit? Do I need perfect credit to get approved for a loan or lease?

What is a credit bureau?
Lenders evaluate your credit worthiness when you are applying for credit utilizing what is known as a credit bureau. There are 3 major Credit Bureaus, Equifax, Experian and TransUnion. Essentially, these credit bureaus provide a file that provides a snapshot of your credit standing, listing both past and outstanding financial obligations. This information is arranged in a manner that conveys to a lender how a credit candidate has met his or her financial obligations in the past and what obligations remain in the future. Lenders such as automotive, mortgage, and credit card companies will run a credit report on you and use this information as a decision tool when making lending decisions. Obviously, those individuals who have met past obligations in a timely manner and that have a proven track record of repaying debts stand a better chance of being extended credit.

Is there more than one credit bureau?

Several major credit bureau services exist and are extensively used throughout the United States, but each service basically works in the same fashion and coveys the same information. The 3 biggest players in the United States are, Experian, TransUnion and Equifax.

What does my credit score mean?

Often a credit bureau has a score associated with it which is used by a lender to quickly categorize various credit candidates in to different classifications bases on perceived risk. The score is derived from a formula that utilizes the information provided within a credit bureau. The score is inversely related to the risk a credit candidate poses to a lender in terms of repayment. Simply put, the higher the score the better. Credit scores which are commonly referred to as beacon scores have a top end of approximately 800 with most individuals falling in the 500 to 700 range. Do you have a high credit score?

What does it mean to have “A,” “B,” or “C” credit?

At some point you may have heard your credit or someone else's referred to using the alphabet or more specifically A, B, C, or D credit. These classifications are generally related to one's credit score and are another way that lenders group and categorize potential credit candidates. The following credit score ranges are commonly used and accepted by most lenders when rating one's credit worthiness.

Is it possible to improve my credit?

It is important to understand that your credit file is not a fixed or static record, but rather a dynamic and continually evolving representation of one's credit picture. It is entirely possible to improve your credit, and, in fact, this is a service that AutoNetUSA.com offers. Our partners, Credit.com offer a great service to monitor and repair your credit score. So you can get the best financing available. Click Here to monitor and repair your credit.

Do I need perfect credit to get approved for a loan or lease?

It is important to note that just because one does not have a high credit score or an "A" credit rating, it is still possible to obtain credit. In fact, there are many services like Bad Credit Auto Loan Guide establised that can help obtain a bad credit auto loan for people with bad credit. Keep in mind, that it will usually cost the borrower more in the form of higher interest if they have a poor credit rating. If you have a high credit rating, you can typically get low interest auto loans. Also, be aware that your debt to income ratio, professional status, and length of employment are not part of the credit score equation; however, these factors are taken in to account by lenders when making credit decisions.