Getting the Best Rate on a Car Loan - Knowing your Credit
by: Mike Miller
CreditPaths.com
Your personal credit score is the single most important factor
in getting a
low rate auto loan. Often shoppers will go to the dealership
and apply for a
loan before checking their credit report and score. Checking
your credit
report ahead of time, will allow you to know where your credit
score sits
before seeking a lender, and allow you to dispute potentially
inaccurate items
on the report that could cost you a much higher interest rate.
If you have an
excellent credit score, you should demand the lowest car loan
rate possible.
The lender will not tell you that you could receive a lower
rate, and save
money by applying for a loan elsewhere. Make sure you shop
around, at both
the dealership, banks and credit unions before applying for the
loan. The
little amount time that it takes to check your credit report
could end up
being the difference between a high rate loan and a low rate
loan.
Credit Score? What Is It?
Your FICO credit score is more than just a number. If you
understand how your
credit score is calculated you can use the information that is
currently on
your credit report to help you maintain or improve your credit
score. Credit
scores range from 300-850 points. The higher the number, the
better your credit
rating is. The higher your credit rating is, the better the
chances of getting
you a low rate loan. Your credit score will be determined by
five different
categories. Some items will have a greater affect on your
credit score than others.
Credit scores analyze a borrower's credit history considering
numerous factors such as:
* Late payments
* The amount of time credit has been established
* The amount of credit used versus the amount of credit
available
* Number of requests for your credit report in the past 6
months by other
credit companies
* Negative credit information such as bankruptcies,
charge-offs,
collections, etc.
There are really three FICO scores computed by data provided by
each of the three
bureaus--Experian, Trans Union and Equifax. Some lenders use
one of these three scores,
while other lenders may use the average, or middle score.
In conclusion, the best way to be assured of getting the lowest
rate possible, is
be reviewing your credit report before requesting a loan. With
your credit report
already in hand you will know what to expect, when you do apply
or a loan, and you
will have time to dispute possibly inaccurate items on your
report.
About the Author:
Mike Miller is the founder of CreditPaths.com, and
informational gateway providing
infomation and resources for anyone in search of credit, from
credit cards, to loans
and credit repair.
Usage Guidlines:
You may use this article anywhere you would like so long as the
article remains
unaltered, the link to
CreditPaths.com stays in
the footer.
About the author:
About the Author: Mike Miller is the founder of CreditPaths.com,
and informational gateway providing infomation and resources for
anyone in search of credit, from credit cards, to loans and
credit repair.
Usage Guidlines: You may use this article anywhere you would
like so long as the article remains unaltered, the link to
CreditPaths.com
http://www.creditpaths.com stays in the footer.
