Equifax and Experian are the credit bureaus most used by auto lenders. They offer services specifically aimed at the automotive industry, and each gets a share of their revenue from the industry. Different types and versions of credit ratings can be included in the car's credit report that lenders will consult to determine your creditworthiness. Keep in mind that knowing which car dealer works with which credit agency is not as important as knowing your credit score or FICO score, as this will help you get the best loan rates.
Finally, remember that when you apply for an auto loan, your credit score doesn't tell the whole story. Making timely loan repayments, whether personal loans, student loans, or payments to credit card issuers, is an important step in increasing your credit score. Lenders will analyze your credit score to determine if they approve an application for a car loan, but that's not the only factor. So far we have mainly talked about FICO because it is the most used model not only among car dealers but in general.
But which of the three credit bureaus is the most used for car loans? Equifax is at the top, with Experian in second place. When you send your credit information to a dealer or directly to a lender to apply for an auto loan, the information they get from credit bureaus is usually based on the FICO Score 8 rating model. There is no definitive answer as to which credit agency is most used for car loans, and it could vary depending on several different factors as to how each lender informs each credit agency. While Experian and Equifax are the most popular agencies among lenders and car dealers, TransUnion can also be used to make car loan decisions.
Have you ever applied for a car loan, either on your own or through a dealer, and your credit score was different from Credit Karma or your credit card (Capital One, Chase, etc.) These factors represent an overview of your current credit situation, but is the model that dealers and bank lenders follow when you apply for an auto loan a little different? If you establish a strong payment history and make monthly car payments on time, you can build credit and get lower rates on financial products, such as car loans or other types of loans. While a luxury car may look attractive, a functional used model may better fit your budget and credit rating. In conclusion, car lenders use Equifax and Experian the most, while TransUnion is least used for auto loan credit checks, at least in some parts of the U.S. UU.
