Carmax finance uses a FICO score
FICO score is used to determine borrower’s credit history and credit risk. Fair Issac Corporation created this three-digit number to examine the borrower credit returning capability. It tells about the credit report like how frequent buyer takes loan and replays on time or pending loans. Carmax uses the FICO score to determine the creditworthiness of borrowers to buy cars.
Apart from CIBIL Score, the FICO score is from 300 to 850. And in Carmax finance, 670 to 739 is a good credit score to get an instant car loan with a good interest rate or APR (Annual Percentage Return). If your FICO score is between 775 to 808 then it is considered an excellent score. With this score, you can easily get any kind of loan in the U.S. Meanwhile if you have still had a CarMax loan if your FICO score is lower than this because Carmax finances bad credits. But in that case, your Annual percentage return might get a little higher and you need to provide additional documents.
FICO Scores used by Carmax finance
There are multiple sources for fetching FICO Score in the U.S. And in most of the customer’s cases it has been observed that Carmax fetches FICO scores from verified sources like;
Along with that, if Carmax finds variation in your FICO score while comparing these three sources then they might check for some more sources to get exact details about your credit history.
Tips to maintain a high FICO Score
To get a high FICO score the most required thing is to maintain on-time payments and bills across all your credit accounts.
- Excellent payment history contributes 35% to your score level.
- Adding multiple accounts with credits owned but not maxed out any also boosts score and contributes 30% to FICO Score.
- The age of the account matters a lot. And the length of your excellent credit payment history contributes 15% in score calculation.
- In order to get an excellent FICO score, users should have to take credits or loans from different categories like retails, installment loans, vehicle loans, etc. This credit mix boosts your score by 10%.
- Never open multiple credit accounts in short periods. This will lower your FICO score. If you opened new credit after a good interval of time then it contributes 10% to your credit score.