subject: Car Buying Credit Score is the Beginning [print this page] Car Buying Credit Score is the Beginning Car Buying Credit Score is the Beginning
Buying a car is a big decision and there's a lot that goes into it beyond just which make and model you want to purchase. A new car is a huge financial investment and your car buying credit, whether good or bad, will come into play. Before you fall in love with a particular car, you should know your credit report and score. Getting these facts before you commit to your dream vehicle will save you a lot of heartache and money in the end.
But credit reports can be unwieldy and confusing documents. Having an understanding of how credit works and what you're looking at will make parsing the complexity of your credit report and score less daunting.
First, understand that credit comes from not one source but three credit bureaus: Experian, Equifax and TransUnion. It takes all three of these agencies to develop a credit score. Each agency looks at the same factors however. They will all look for your current and past addresses, the amount and type of debt you carry, lenders's names, debt payment history, how often credit report inquiries have been made on you, and your overall history of liens and bankruptcies.
All of these factors will make up your credit report and influence your score. Your credit score will fall between 300 and 850, with 300 being a bad credit score and 850 being an excellent score. This number is what a lender will look at when judging your creditworthiness and whether they should lend you money for a vehicle or other purchase.
While you can get your credit report for free, you will need to pay to see your credit score more than once. You can ask each of the three credit bureaus for your credit score once a year. If you need to see your report more than three times in a year, however, you will have to pay for it. You can find your credit score through websites such as LendingTree. Membership on such sites can get you access to your credit score. These websites will also sometimes include a free trial membership that allows you to view your credit score for free for a set period of time.
Once you've got your report and score, it's time to check them. Mistakes can happen, but you will need to be vigilant to catch them. Well before applying for a loan or buying your new car, you should check your report and score to ensure they are accurate. Similar names or Social Security numbers may occasionally cause mistakes on credit scores. Such a mistake could hurt you in the end if it is not caught before you apply for a loan however.
Luckily, correcting mistakes is simple. All it takes is a letter to the credit bureau pointing out what information is inaccurate and why. The bureau will have to investigate your claim and should be able to clear up the mistake within 30 days. Make sure you get written confirmation from the bureau that the mistake has been fixed.
Car buying credit scores, etc., can seem like an overwhelming and complicated aspect of car buying process, but if you take the time to gather the information you need, even this step can be simple and painless. Don't leave your credit to chance though. Ensuring on your own that your score is accurate and high will save you time and frustration in the long run.
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