Credit Tips / About Credit
   

What's a credit score?
    A credit score is a number valuation from 300 to 850 that ranks the relative risk of lending money to consumers. Each of the three credit bureau providers (Experian, Equifax and TransUnion) use a mathematical formula that considers numerous factors in each consumer's credit file - they look at depth of credit, amount of credit, amount of opened credit, credit utilization rates, payment history, type of credit, etc. to arrive at a credit score.
   
  • Credit scores above 700 are genreally considered "prime" credit
  • Scores between 620 to 700 are considered "non-prime" credit
  • Scores between 535 and 619 are generally considered "sub-prime" credit
  • CPS generally provides finaning to consumers with credit scores between 525 to 650
    (although CPS finances many consumers with credit scores less than 525)
    How do I improve my credit score?
    One of the very best ways to improve your credit score is to finance an automobile-and make payments on time. Automobile loans are considered "installment" loans. These are loans with specific monthly payment amounts. Credit cards are unsecured "revolving" debt and while they should also be paid on time, they do not generally have the same impact in your credit score as installment loans.
    How do I get my credit score?
   

Each of the credit bureau providers is required by law to provide consumers a free copy of their credit report annually. You can contact the credit bureau providers at: 
   
    Additionally, there are many "for fee" services that provide consumers their credit reports on a regular basis.
    What do lenders look at before granting credit?
    The basics boil down to "ability, stability and willingness".
   
  • Ability refers to the income level and employment history of the loan applicant. 
    If the applicant has either low income or has too many debts in relation to their income, then they have a diminished ability to pay back loaned money)
   
  • A weak employment history -- poor stability, also represents higher risk for the lender. Consumers that can not hold a job are more likely to have difficulty repaying their obligations
   
  • Willingness refers to overall credit profile of the buyer. While many consumers encounter credit problems--bankruptcy, repossession, etc., they also display some positively paid accounts either before or after their credit problems. That profile is typically acceptable to most sub-prime lenders--including CPS. There are very few companies that will extend credit to buyers that have never paid anyone--and have gone to charge off or collection status on numerous accounts shortly after the accounts were opened.
    Is my privacy protected?
    Yes, Autoloantoday is a totally secure website...
    Does this service cost anything?
    No, the application is free.
    What happens if I have credit problems and shop for a car before my financing is in place?
    Most dealers are not equipped to handle customers with credit problems-that means you will probably be turned away or you will be asked to add a co-signer or you may be steered toward a lesser car or you may be asked to come up with a very large down payment. It's best to get your financing in place before you shop-it puts you in control of the purchase process!
    What kind of credit problems are OK with autoloantoday?
   
  • Buyers with discharged bankruptcy are OK
  • Buyers with previous repossession are OK
  • Buyers with charge offs, slow pays and collection accounts are OK
  • First time buyers--and buyers with light credit are OK
  • Buyers with low FICO scores--even 500 or less are OK

Certain restrictions apply to all of the credit problem profiles listed above, but the bottom line is autoloantoday is backed by CPS. CPS has financed over 500,000 vehicles for buyers with credit problems.
    What are the basic requirements to get qualified?
   
  • You must be currently employed--with no more than 2 jobs in the last year
  • You need to make at least $1,600 per month
  • You must be at least 18 years old and a resident of the U.S.
  • Your total household obligations (including your new car payment) can not exceed 50% of your gross monthly income.
    How does auto finance work?
    There are really two main kinds of auto finance programs used today. Installment loans and lease products. The most common form of finance by far (about 75% of the market) is installment finance. This is a purchase arrangement where the consumer has a fixed monthly payment and owns the car when all the payments have been made. When the vehicle is paid off, the buyer gets a clear title from the lien holder. A lease is the right to use a vehicle for a specified amount of months and the car is returned to the lessor at the end of the lease period. Autoloantoday does not offer lease products.