Do you check your Credit score and credit report before you go shopping for a car? You might find out that it is well worth your while to do so! One of the top mistakes people make when buying a new car, or refinancing an auto loan, is not checking their credit score before they go car shopping. In fact, most people wait until they find the car they want; then they have the dealer check their credit. Below is some great information to read, before heading out to buy a new or used car.
Generally, people budget for an auto purchase, find a car that fits their budget and only then apply for their credit score. This is actually a rather iffy way of going about things. Here is why.
Incorrect or outdated information on your credit score lowers it thereby making you pay higher interest rates. Removing this takes 60 to 90 days.
Typically credit score is determined based on the following factors: past payment history, outstanding debt, time span of having had credit, new credit sought recently, types of credit currently possessed. It is important to note that the best auto financing rates are available to those scoring over 700 on the credit score. When you come across used car lots that are okay with financing irrespective of credit scores, know that the prices are already marked higher to deal with defaulting and high risk customers.
If you are married, you would need the credit score for both and your spouse.
Article Source: Urse Honda.