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nanuet bad credit car loan
Know Your Credit Score Before Applying for an Auto Loan
It is important to know what your credit score is before you apply for an auto loan.
Finding out your current score ahead of time will help you determine what lenders may open a new line of credit for you and what rates you may qualify for.
To obtain your official credit score you will want to obtain a copy of your credit report from each of the three national credit bureaus - Equifax, Experian and TransUnion. Although Equifax is the most widely accessed credit bureau, lenders may get their reports from one of the other two bureaus. An error on any one of these reports could lower your score and result in you being denied credit.
Listed below is the contact information for each of the national credit bureaus:
Equifax
Equifax Credit Information Services, Inc. P.O. Box 740241 Atlanta, GA 30374 1-888-766-0008 www.equifax.com
Experian
National Consumer Assistance Center P.O. Box 2002 Allen, TX 75013 1-888-397-3742 www.experian.com
TransUnion LLC
Consumer Disclosure Center P.O. Box 1000 Chester, PA 19022 1-800-888-4213 www.tuc.com
To protect your privacy and verify your identity, each bureau requires that you provide your full name, proof of current address, addresses and Zip codes for places you have lived in the past 5 years, date of birth and social security number.
If you are ever denied credit for any reason, you can get a free copy of your credit report from the national credit bureaus. Otherwise, the cost to obtain a copy of your credit report is usually around $9 but may be cheaper in some states. You will need to request your credit score separately. Experian charges an additional fee for a credit score request, with a combined $14.95 charge for both.
Once you obtain your credit score you will know how easily you can get an auto loan with good rates and terms. The closer your credit score is to 750-850, the better off you'll be. If you credit score is in the 600 range or below you will want to find out from lenders what the range of credit scores they will accept before applying for any loans.
Finding out what range of credit scores lenders will accept may also help prevent your credit score from being reduced further. Every time a lender checks your credit score, the credit bureaus make a record of the inquiry. Too many inquiries can be seen as a sign of financial instability and your credit score could be lowered as a result.
The time you take to find out your credit score on your own, will save you time and hassle later on as you begin searching for an auto loan that is right for you.
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John Campbell is the writer and editor of CashBuzz, A financial portal for the rest of us. Check out cashbuzz.com for the latest articles on money management and tips and tricks that can help improve your finances. This article may be reprinted on your Web site if the copyright, author information, and active link are included.
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