Are you a first time car buyer? Maybe your old car is due for car repairs and maintenance and it makes more financial sense to buy a newer one? Whatever your situation, here are a few tips to help you better understand your credit and how important it is to your car shopping ventures.
In July 2003 the Consumer Federation of America found that only 2 percent of Americans said they knew their credit score. And only 3 percent could, without help, name the three main credit bureaus. This is a terrifying thought given how important your credit score is.
There are 3 major credit report agencies: Transunion, Equifax and Experian. Each one could contain slightly different information based on what gets reported to them from your creditors.
The FICO score, is a three-digit number between 300 and 850. It is a snapshot of a person's financial standing at a particular point in time. This number will be higher for those that have had established credit for a long time, keep low balances on credit cards (under 30% of your cards limit is best) and for those that pay thier bills in a timely manner. The higher a credit score, the more likely a person is to be approved for an auto loan and receive favorable interest rates on thier next vehicle purchase.
Here are some tips to keep in mind:
*Keep your credit card balances under 30% of thier limit
*Pay your bills on time. (One missed payment can drop your score over 100 points!)
*Avoid closing your oldest account (this shortens your credit history length which can lower your score).
*Know whats in your report and dispute inaccuracies with all 3 reporting agencies. You can order a free report annually from www.annualcreditreport.com
*Avoid applying for credit you don't need. Many credit card companies will send you offers offering low rates and special deals. Make sure you read the fine print and avoid applying if you dont need it.
*Keep your credit card balances under 30% of thier limit
*Pay your bills on time. (One missed payment can drop your score over 100 points!)
*Avoid closing your oldest account (this shortens your credit history length which can lower your score).
*Know whats in your report and dispute inaccuracies with all 3 reporting agencies. You can order a free report annually from www.annualcreditreport.com
*Avoid applying for credit you don't need. Many credit card companies will send you offers offering low rates and special deals. Make sure you read the fine print and avoid applying if you dont need it.
Also, know that many companies will offer you a free trial to view your credit score. Often, these are credit scores, but not FICO credit scores and FICO scores are what most car dealerships use to determine your credit worthiness.
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Here at Clapp Volkswagen we offer low-rate financing for new cars and used cars for those with good credit, bad credit and even first time car buyers. We have guaranteed credit approval and offer Buy Here Pay Here as well.
It is our priority to get you into a reliable vehicle that you will love and fits your budget needs too. Click HERE for a fast and secure pre-approval online.
