Your Credit Score Impacts Your Car Purchase
Your credit score impacts your car purchase to a great extent. The truth is, you can buy a car no matter your credit score. But you may be stunned by the cost. A poor credit score will actually be the reason you pay more. Way more. When it comes to financing, even a decent credit score could drastically affect your overall price.
So, does your credit score impact car financing? Yes. How can you improve your score before applying for a car loan? We’ll give you some tips. Keep reading to learn how to get the best deal possible for you.
Get to Know Your Credit Score
Get to know your credit score before buying. Check your credit standing. Then you’ll have an idea of where you’re at. You’ll know what to expect from lenders and in terms of interest. You should get your credit score from all three credit bureaus: Experian, Equifax, and TransUnion.
As you probably imagine, the higher your score, the better the auto loan. Your credit report is essentially your financial track record. It can show lenders that you borrow and make payments in-full and on-time.
Your report can also paint you as a riskier bet. Lenders look at your history and note that you might miss payments. Then they’ll have to collect. All of this results in higher interest rates. The decision to improve your credit is definitely a step in the right direction.
A Poor Credit Score and the Impact on Car Financing
Just for perspective, if your credit score lies between 300-500, you could be facing auto loan interest rates of nearly 15-20%. Thousands of dollars more in the long term! Your bad credit is costing you. With low scores, you’re looking at some incredibly high monthly payments, too. It’s definitely worth it to repair your credit.
That’s what we do here at White, Jacobs & Associates (WJA). We’re not a traditional dispute service. We employ credit analysts and an investigative research team. And our aggressive, attorney-backed credit repair program usually yields results in 30-45 days. Take advantage of our no-cost consultation today!
Higher Credit Score Has a Positive Impact on Your Car Purchase – Best Ways to Improve It
The best plan is to improve your credit before buying your car. Here, we’ll give you some tips on how to do just that:
• We’ve mentioned this, but check your credit score about 3-6 months before you begin seriously looking for a car.
• When you get your reports, check for errors. File disputes to correct information.
• Pay down your consumer debt. If too much of your available credit is being used, your credit score is suffering. You can ask for a credit limit increase. But it’s up to you to avoid using that available credit.
• Refrain from making major purchases or applying for other sizable loans before you seek a car loan.
• Don’t close lines of credit you aren’t using anymore. Unused credit is a good thing!
• Pay all of your bills on time. Sign up for automatic payments if you need to. That way, you at least make your minimum payment each month.
Get Informed & Improved
Whether you’re in the market for a new or used car, this information will serve you well. Know your credit, and work to improve it if you need to. Even a little bit of improvement can go a long way in terms of better rates. And don’t forget to shop around for the best rates you can find!