Obtain Your Credit Report before Getting an Auto Loan

You will need to have your credit report before you get an auto loan. Your credit report will have a major impact on how much you pay for your loan. Here are some of the basics that you will need to know when you get a credit report.

Getting Your Credit Report

You will need to get your report from one of the three national credit bureaus: Experian, TransUnion, and Equifax. You can get your report from one or from all three. It might be best to go with all three right away. That way, you are prepared, regardless of which bureau your auto loan lender selects to pull your credit history. If one of the companies has incorrect information, then you will know and can alert them.

Each one will have your FICO score. This is a three-digit number that ranges from 300-900. If you have a low score, your credit is not doing well. The higher your score is, the better your chances of getting a good auto loan. Lower credit scores will translate into very high interest rates.

How They Determine Your Score

The five major factors are:

  • Past payment history
  • Debts
  • How long you have had credit
  • How much new credit you’ve sought recently
  • The types of credit you have

A general knowledge of what lenders look for can help you improve your score. Make sure you dispute any errors on your credit report in writing before you apply for an auto loan.

Check and Then Re-Check

Go through every single part of your credit report. You need to make sure every aspect is correct. The smallest error cost you thousands of dollars on your auto loan. Once you have looked through everything, go though it again! Better to be safe than sorry. If you take a little time to clean up your credit report, you will find that you can easily pay less on your auto loan.

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