The “lack of auto account information” factor code means you must improve your trade line diversity to increase your credit score by adding a car loan or lease.
Credit score factor codes guide consumers in increasing their ratings and fall into five primary categories: payment history, amounts owed, new credit, length of history, and trade line diversity.
In a courtroom, character witnesses carry more weight collectively when they come from various aspects of your life: family, friends, neighbors, co-workers, etc.
Likewise, you can complete your credit character witnessing by rounding out your trade line profile: installment, revolving, unsecured, secured (auto or home).
Addressing Lack Of Auto Account Information
The “lack of auto account information” factor code means people receiving this message have a clear path to improve their credit score over time. Feed the algorithm the data it wants to rate your creditworthiness higher.
You have clear directions to improve your credit score if lack of auto account information is one of the factor codes communicated. If your consumer report is missing essential data, correct the shortcoming.
Request a secured car loan (Sponsored Link) to add a new auto account to your consumer report. You do not have to buy a new vehicle for this to work. Tap into the equity of your existing ride and get cash back to pay bills or address other issues with your credit score.
If the amount owed or revolving accounts is too high, it also appears as a factor code: use the money raised by refinancing your older vehicle to pay off credit card debt. The interest rates on secured installment contracts are typically lower than unsecured revolving accounts, so you save money simultaneously!
Score Factor Code
Credit scores publish factor codes such as lack of auto account information to inform consumers of gaps in their underlying consumer report. In this case, trade line diversity is an area of shortcoming.
The lack of recent installment loan information is a similar factor code with a broader umbrella. For example, consumers with a preponderance of revolving accounts might receive this message, suggesting a need to diversify their profile as indicated by this matrix.
|Revolving||Home Equity Lineof Credit (HELOC)||Credit Card|
Personal Line of Credit
Home Equity Loans
Dental Payment Plans
Lack Of Auto Account Information Consequences
Consumers should know the short and long-term consequences of addressing the “lack of auto account information” factor code. Your credit score might drop temporarily before improving.
The credit score needed to buy a car without a cosigner depends on the size of your down payment and your debt-to-income ratio. However, both secondary elements matter less when refinancing.
Lower Initial Score
When taking out a car loan to address the insufficient auto information factor code, your credit score will dip temporarily because the hard inquiry and new trade line correlate with higher default risk.
- The hard inquiries suggest that you may open a new credit obligation of unknown type and terms but appear only on the furnishing bureau’s report (Experian, Equifax, or TransUnion).
- The new auto trade line removes the shroud from the hard inquiry, revealing the account type and term (monthly payment and the number of installments), but you have yet to show you can pay the obligation on time.
Higher Later Score
Several months after taking out a car loan to address the “lack of auto information” factor code, your credit score should rise, provided you make your monthly payments on time.
- The hard inquiries become meaningless because their predictive value has a brief shelf life even though they stay on your consumer report for two years. Most lenders make underwriting decisions within days.
- The new auto trade line begins to help rather than hurt your credit score as you start making one-time payments, establishing that you can handle the additional obligation responsibly.