FINANCING A
CAR BUYING TIPS ADVICE INFORMATION GUIDE HELP - CAR LOANS RECOMMENDED
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INFORMATION
Here
is what you need to know before going to get a
car loan.
WHERE
TO START WHEN FINANCING A NEW VEHICLE
Financing a new automobile, but not sure where to start?
There are several
important factors to consider when financing a new vehicle, but knowing your
credit score is critical to understanding how much it could cost you to finance
that new car.
AUTO
FINANCING - WHERE TO START
Credit scoring is a method by which creditors determine whether or not to
grant loans to individuals. Information about your payment history on credit
cards, auto loans, house payments, school loans, etc is collected and compared
to other individuals with similar credit histories. This information helps
creditors determine your likeliness to repay a loan, and enables them to
designate a credit score that banks and other financial institutions use when
deciding whether or not to issue a loan.
The lower your credit score, the higher your interest rate is likely to be on
a new loan. If your score is too low, financial institutions will not loan you
money because they may perceive you as too high a credit risk.
There are three major credit reporting agencies that can help you understand
your credit rating and how likely it would be that a financial institution would
provide you an affordable loan:
Equifax: 800-685-1111
Experian: 888-397-3742
Trans Union: 800-916-8800
While there might be a minimum charge for your report, the cost is worth it
for you to know how likely it is for you to be awarded an auto loan. Through
www.creditreport.com, you can purchase all three reports containing your credit
score in one location for $25 to ensure the information reported on you is
accurate. If not, then you can also clean up your credit reports through phone
calls to those financial institutions that have misreported information on you.
If you don’t want to pay for your credit report, there are several free
resources through which you can check your credit report (your credit score will
still be charged separately ranging in price from $25-30 depending on the
resource).
Once you have taken the time to ensure your credit score and rating are
strong, you will be in a better position to negotiate a low-interest rate auto
loan with either your bank or with a dealer-recommended financial institution.
To
teach and learn money skills, personal finance, and money
management, please go to the Money
Instructor home page.
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Loan Choice Information
Here
is what you need to know before going to get a
car loan.
To
teach and learn money skills, personal finance, and money
management, please go to the