Getting approved for a car loan has become a lot more difficult recently as dealers are looking a lot more closely at peoples credit reports. As a result, many people who thought they had decent enough credit no longer do and are very surprised when they’re turned down for a loan.
The way to avoid that unpleasant scenario is to know beforehand what your credit score is likely to be. To get an idea of what your credit score is you need a cpoy of your credit report.
To obtain your credit report you have to visit one fo the two established credit reporting agencies in Canada – Equifax ot Transnion. Once you get to their website there are fairly obvious links to acquire your credit report, or you can visit other sites to get it as well. Just make sure the site is legitimate. Although you will pay a bit to get your credit report that expense will may be recouped with lower rates later.

Initially you just want to look over your credit report for accuracy. Because of the large numbers of transactions that are reported everyday it is not uncommon for there to be errors. If there is, simply get in touch with the company responsible and set the error straight. This is not very unusual, and as such the companies have well established protocols to deal with reporting errors.

Now you have to calculate your credit score. Different lenders use proprietary software to calculate credit score based on a credit report, and as such there is some variance depending on what company is supplying the numbers. To get a general idea you can use the FICO score, a very common credit score calculating method. We do this by searching for a FICO score calculator and then putting the numbers off the credit report in it.
Armed with you credit report and credit score, you can go out and look over vehicles. Most times people just head there and see if they will be approved, but every time a request is put in to look at your credit report your credit score is lowered a bit.
This counts against you because the people who are running around from place to place looking for credit are generally the least creditworthy. More than a few requests over a short time frame means that the individual applying for credit went all over the place trying to get it – but couldn’t. Hopefully that makes sense.

But with your credit report you know what your credit score is, and you can then go to dealerships armed with both. You can enter negotiations and work out preliminary terms based on what you have already done. Then it is just a matter of finding the car and terms that best suit you before actually putting in a request for credit.
You should know that the final terms of the deal may not be precisely what was agreed upon. Remember credit score is an interpretation of the credit report, and different lenders will interpret it differently. Rates can also fluctuate, so what actually is written down may vary a bit from the initial numbers. But your terms and rates won’t be that much different from the initial deal.
Keeping your financial matters in order always helps, so take the time to review your credit report before you go out and get your next car loan.

Getting approved for a car loan has become a lot more difficult recently as dealers are looking a lot more closely at peoples credit reports. As a result, many people who thought they had decent enough credit no longer do and are very surprised when they’re turned down for a loan.

The way to avoid that unpleasant scenario is to know beforehand what your credit score is likely to be. To get an idea of what your credit score is you need a cpoy of your credit report.
To obtain your credit report you have to visit one fo the two established credit reporting agencies in Canada – Equifax ot Transnion. Once you get to their website there are fairly obvious links to acquire your credit report, or you can visit other sites to get it as well. Just make sure the site is legitimate. Although you will pay a bit to get your credit report that expense will may be recouped with lower rates later.
Initially you just want to look over your credit report for accuracy. Because of the large numbers of transactions that are reported everyday it is not uncommon for there to be errors. If there is, simply get in touch with the company responsible and set the error straight. This is not very unusual, and as such the companies have well established protocols to deal with reporting errors.

Now you have to calculate your credit score. Different lenders use proprietary software to calculate credit score based on a credit report, and as such there is some variance depending on what company is supplying the numbers. To get a general idea you can use the FICO score, a very common credit score calculating method. We do this by searching for a FICO score calculator and then putting the numbers off the credit report in it.
Armed with you credit report and credit score, you can go out and look over vehicles. Most times people just head there and see if they will be approved, but every time a request is put in to look at your credit report your credit score is lowered a bit.

This counts against you because the people who are running around from place to place looking for credit are generally the least creditworthy. More than a few requests over a short time frame means that the individual applying for credit went all over the place trying to get it – but couldn’t. Hopefully that makes sense.
But with your credit report you know what your credit score is, and you can then go to dealerships armed with both. You can enter negotiations and work out preliminary terms based on what you have already done. Then it is just a matter of finding the car and terms that best suit you before actually putting in a request for credit.

You should know that the final terms of the deal may not be precisely what was agreed upon. Remember credit score is an interpretation of the credit report, and different lenders will interpret it differently. Rates can also fluctuate, so what actually is written down may vary a bit from the initial numbers. But your terms and rates won’t be that much different from the initial deal.
Keeping your financial matters in order always helps, so take the time to review your credit report before you go out and get your next car loan.

Article Source: http://www.articlewarehouse.com

Want to get the best rate on your next used used car? Check out our huge inventory and then we’ll get you the best terms possible on your car loan.

Bookmark:
  • del.icio.us
  • Digg
  • MisterWong
  • Google Bookmarks

Tagged with: • • • • • •

Filed under: Credit Reports

Like this post? Subscribe to my RSS feed and get loads more!