Do You Know Your Credit Score Before You Apply For A Car Loan?
If we met on the street today and I asked you what your credit score was
, would you know the answer? Many people today have no idea where they stand when it comes to their credit score or situation. Often people think they have great credit yet are surprised to find out that they dont and vice versa. Keep in mind that knowing your credit score plays an important role in your car loan and buying process. As important as this is, it isnt the sole decision that the bank will make when determining if you are approved or not approved. One such factor is your Income to debt ratio but thats a whole other ballgame.
Going back to credit score, there are a multiple of ways to find out your score. With the easy accessibility of the internet, an individual can find their score in a matter of minutes. Some of these sites require you to pay but there are others out there that are free. However you obtain your credit score is not as important as what power you possess before going into the dealership. There is no reason to be left in the dark when going in to buy your car and apply for that financing.
Some dealerships try to make money on charging you a higher interest rate than the one that you qualify for. Dont just trust what the dealership says! Know where you stand before you get to that bargaining table. A good idea too is to find out what competitive rates that you are able to get. So, if you know you have a good credit score, bargain with the dealership. Dont just listen and believe the rate that they say you qualify for. Know what you qualify for before you get down to the negotiation table. Remember, if your score is higher than 680 then you qualify for a prime rate and if it is below 680 you qualify for sub-prime rates. The sub-prime category generally has rates ranging from 8% to 29%. The bottom line is that if you qualify for a better rate because your credit score dictates that, dont settle by paying more.