Another important factor that makes up 15% of your FICO credit score is length of your credit history. The longer your credit history, better for your FICO score. Additionally, though, a long history with any particular lender will be good for your credit score.

4. Type of credit mix.

The fourth factor taken into consideration is type of credit mix that you have. For example, do you have only high risk unsecured type credit, or do you also have some solid secured loans such as a home mortgags? Those consumers who have a mix of credit have higher a FICO score. This fourth factor just counts for 10% of total FICO score.

5. Number of new credit applications.

The last factor in FICO rating is amount of new applications that you fill out. If you have recently filled out a lot of credit applications, this will hurt your score because it puts lenders “on alert” that something may be wrong. This part of score is worth 10%.

Lenders themselves will normally look at employment, income, length at current residence, and marital status, but these do not affect your FICO score. If you intend to borrow in future, you do need to pay attention to your FICO score. If your FICO score is low, this could lead to higher interest rates, extra mortgage insurance when buying a home, and in some cases denial of loan.

If you plan to take out a major loan, such as a home mortgage, it could be a wise move to get a copy of your credit report 6 months before you plan to apply. That will give you time to look over your history, to ensure there are no discrepancies. If you find inaccuracies, contact Credit Reporting Agency in writing. They will have 30 days to investigate it, and then correct it if they find your claims are true. You may also want to ask for a revised credit report; they are required by law to supply you with one if an inaccuracy is found and corrected.

Therefore, amount of secured loan must be decided with care. Once inside showroom, almost every vehicle looks good. But one must vote for vehicle that most suits his budget.

The loans process: If you thought there is little to an automobile loan after making decision to take it, then you are wrong. You are still halfway in loans process. The implementation part is still remaining.

The first step in loans process will be finding a suitable lender. Though there is a single lender who offers automobile loan, it is difficult to find lender from crowd of lenders. The various lenders chosen have to pass through various stages of screening to prove that they can provide loan at best of terms. Online search significantly simplifies process of search. No obligation loan quotes offered by lenders too are of great help in search process.

Once lender is selected, negotiations on loans begin. Details of loan like term of repayment, interest charged, actual cost of loan, amount of monthly or quarterly repayments etc. are to be decided in this stage. This is most important step because this will decide how loan fares in long run.

The borrowers are advised to tread cautiously in this stage. The terms and conditions of lenders must be read carefully. Particular attention must be given to clauses which rule out early or premature repayment with a penalty. All queries regarding loan must be immediately clarified to prevent problems from emerging in future.

The days ahead.... Has loans process sucked most of your energy? You can rest now because days ahead are a smoother ride. You finally get resources to purchase vehicle of your choice. Secured automobile loans give borrowers a better bargaining power. Regular repayments to automobile loan can further assure a smoother future. Taking a loan protection can be helpful in full and final settlement of secured automobile loans.