In recent years, loans have been part of a long-term solution. Acquiring a car right off the bat is not easy, so seeking support with a loan is ideal. But not all dealers work the same way; knowing who pulls Transunion for auto loans will be a big help for the purchase.
Dealers have general rules for auto loans, not the least of which is the credit score. The first step is to seek information about the applicant’s credit history to understand what type of customer they are and what the creditworthiness is like on any other active or charged-off loans.
Lenders have different options when choosing the credit bureau from which to get the credit report; of course, one is Transunion. It should be noted that each bureau has its credit score, some more commonly used than others for their effectiveness.
What credit bureau do car dealers use?
The best way to find out how to get the car you want is to know what credit bureau car dealers use. There are many credit reporting agencies, but only three have remained the main ones for determining loan eligibility.
Credit bureaus compile credit reports and credit scores for individual loans. They package and evaluate consumer credit reports from which credit scores are taken. They have the distinction of exchanging information even though they are private companies.
Of the large number of agencies doing the same work in the United States, only three dominate the market for collecting, disbursing, and analyzing consumer information in the credit markets. Equifax, Experian, and Transunion are the bureaus most commonly used by auto dealers.
Equifax
This credit bureau has been in operation since 1899. It offers protection against credit fraud, identity theft to consumers, and the sale of credit reports to different companies. It has functions in 24 countries. Customers can purchase credit monitoring services that include Equifax credit scores, also known as Beacon Scores.
Experian has an automatic FICO score for credit bureaus: Auto Score 2, Auto Score 8, Auto Score 9.
Experian
Experian began operating in London when business owners began sharing information about customers who did not pay their bills. It has been ranked as one of the most innovative companies in the world. It operates in 45 countries with more than 17,800 employees.
It uses the FICO 8 credit scoring system to run its credit reports. In addition, it offers a subscription-based CrediWorks Premium Plan. If you subscribe, you can get your credit score and credit report from all three major bureaus.
Experian’s automatic FICO score for the credit bureaus is Auto Score 5, Auto Score 8, and Auto Score 9.
Transunion
With Transunion, if you feel you have been a victim of identity theft or are at risk of identity theft, you have the option to freeze your credit report. The agency will then notify the other two bureaus of what it has done to protect your data.
This agency began as a holder for a tank car company until it diversified into credit reporting. In 1988 it had complete coverage and consumer information on every active adult. Its database includes more than one billion consumers in the more than 30 countries where it operates.
Transunion has an automatic FICO score for credit bureaus: Auto Score 4, Auto Score 8, Auto Score 9.
On dealers, there is no definitive agency that is used more than another; however, some lenders prefer to work with one more than another. Auto loans could vary according to some factors depending on each lender.
Loan companies that only use Transunion
Knowing what the major credit reporting agencies are, it’s time to find out who pulls Transunion for auto loans. Creditors can choose from one or more bureaus to report information, so credit scores vary.
Like all other bureaus, Transunion collects and maintains consumer credit history to ensure that creditors have all the information they require to decide whether to approve credit.
In that sense, some lenders use Transunion only for credit checks. The report is more robust, so you can choose an agency that only pulls Transunion for your new car credit. Keep in mind that despite choosing a Transunion agency, lenders may still have strict requirements for credit approval.
Online lenders have become a well-known source for personal loans. They can offer better loan terms, and some are only willing to work with Transunion to determine if the application is approved. Here you can learn about some of them.
Upgrade
Upgrade stands out for its high loan amounts, up to $50,000, with low-interest rates. In addition, it has low credit requirements. You can usually get approved for a loan with a credit score in the good range, i.e., between 600 and 620. Approval usually takes only a few minutes.
Requirements include being at least 18 years old and having a bank account and an email address. You may also be asked to provide pay stubs, recent bank statements, and a government-issued photo ID.
Prosper
Although this online lender’s highest amount is $40,000 it also has very affordable terms and requirements. To get approved, you must have a credit score of at least 640. The loan term is between 36 and 60 months.
As for the requirements, you must be at least 18 years old; you must provide recent pay stubs, tax returns or bank statements, a valid Social Security number, and a government-issued photo ID.
Avant
This lender has no minimum credit score, the decision is based on several factors, but approvals have been reported with scores in the fair and good range. The maximum amount is $35,000 for 24 to 60 months.
You must be over 18 years old to apply, provide a valid Social Security number, and have a valid checking account. As with many agencies, you may be asked for additional identification, such as a government-issued photo ID.
Most Transunion-only lenders look for credit history, intending to have a better chance of approval and better loan terms. Keep in mind that if it’s a very high loan, lenders may decide to get scores from other agencies.
Remember that lenders will look at your credit score to help you buy a car, but it’s not the only thing that matters. They must also consider your debt-to-income ratio and the initial amount you are willing to put down, among others.
You can buy a new car with bad credit, but if approved, some factors could affect the terms of the loan, the monthly payment amount, and the interest rate.