Are You Aware Of Your Own Credit Score Before Walking To A Dealership?
If the title of this article sounds shocking to you
, don't be. You will be surprised how many people today are completely unaware of their own credit score before committing to a car loan. Your credit score plays an important part in obtaining your next car loan, but it is not the sole decision maker for the banks. There are many other factors involved too when the lender looks at your credit application such as your income to debt ratio, your employment stability and your past payment history. But the topic of today's discussion will be your credit score! In today's world of information technology to access to one's credit report is easier than ever. There are multiple web sites offering free credit reporting services, there is no reason why you should be kept in the dark before applying for a car loan.
Knowing one's credit score will give you leverage and bargaining power, not to mention it will help you been a victim of extortion interest rates. Don't let your next dealership tells you what APR rate you may qualify, bargain them for a better loan when you know you have a good credit score. If you have a credit score higher than 680 you will be considered as "prime rate" customers where you will be able to access favorable interest rates. But if you have a credit score less than 680 you are then considered to be a "sub-prime rate" customer where you will be subjected to interest rates ranging form 8% to 29%. With the information of your credit score you can tell your lender you should be able to qualify for a lower rate if your credit score is only few points away from 680.