|
Auto Loans
New Car Info:
New Auto Loan Rates
Benefits of Buying New
Understanding Depreciation
Depreciation Calculator
-Interest Rates
-Auto Warranties
-Car Insurance
-Dealer Info
-Car
Loan Basics
-Rebates
-Saving $ While Driving
-Buying & Selling
-Used Auto
Info
Mortgages
Personal Loans
Debt Consolidation
Credit Reports
Credit Cards
Home
-Taxes
-Managing Money
-Credit Help
-Checking Accounts
|
CHECK YOUR CREDIT WHEN BUYING A NEW CAR
The first thing you should do when in the market for
a new vehicle is check your credit. Most people don't
know what there credit score is, or what information is
present on their
credit report, only until they apply for financing.
The smart thing to do is check your credit at least a
few months before you even consider stepping foot in the
dealer's showroom. Why? If there are errors on your
credit file that are going to affect your chances of
approval or the auto loan rates you receive, it will
take 60-90 days to remove them. Learn more about
removing errors. Also, if you discover that your
credit score is lower than you expected, you can use the
few months to
improve your score up by means of a few simple
methods.
Ordering your credit report
The three major credit reporting agencies are Trans
Union, Experian and Equifax. They all have there own
profile of you and your credit. Therefore, it is
important that you obtain a
3-in-1 credit report. This will allow you to view
your info in an easy-to-read side-by-side analysis of
your info as reported by all three bureaus. This type of
credit report in relatively inexpensive and is even
available for free when you utilize a free trial of the
Credit Monitoring System. **If you are married, it
is important that you obtain a copy of your spouse's
credit report as well.
Once your report is obtained, determine what your FICO
score is. Named after Fair Isaac Corp., the firm that
developed the scoring model back in the 1950s, FICO
evaluates the data in your credit report to what's on
the credit reports of millions of other consumers.
Your FICO score can range from as little as 300, to as
much as 900. You are considered a low credit risk the
higher your score is. It is safe to say that is you have
a score of 650-700, you have decent credit. Scores of
701-750 is very good and 751 and above is excellent. It
is important to understand that these credit grades are
generalized and that every lender is going to have their
own standard when determining approvals and interest
rates.
Understanding
how credit scores are computed
There are five main variables that influence your score:
- payment history
- amount of debt you encompass
- amount of time you have actually had credit
- how many inquiries you have as a result of recent attempts of obtaining
credit
- kind of credit you have, i.e. credit cards,
equity loans, etc.
Learn more about
interpreting your credit report.
Correcting mistakes
It is very important that you identify any type of
misinformation listed on your credit report. This can
include accounts that do not belong to you or have been
closed, resolved billing disputes, inaccurate credit
limits and balances, etc.. Also look for outdated
information. It is typical for negative marks to stay
present on your credit file for seven years. A
bankruptcy will remain listed for 10 years. Any
information being reported must be supported by the
reporting bureaus. If they can not support it, the item
must be immediately removed. If the provided support is
untrue, get in contact with the creditor and ask them to
send you the correct info. Once received, send a
dispute letter to the agency that is reporting the
erroneous information. It may also be necessary for you
to send a
follow-up dispute letter.
|