Getting the Best Rate on a Car Loan - Knowing your Credit

by: Mike Miller

CreditPaths.com

Your personal credit score is the single most important factor in getting a

low rate auto loan. Often shoppers will go to the dealership and apply for a

loan before checking their credit report and score. Checking your credit

report ahead of time, will allow you to know where your credit score sits

before seeking a lender, and allow you to dispute potentially inaccurate items

on the report that could cost you a much higher interest rate. If you have an

excellent credit score, you should demand the lowest car loan rate possible.

The lender will not tell you that you could receive a lower rate, and save

money by applying for a loan elsewhere. Make sure you shop around, at both

the dealership, banks and credit unions before applying for the loan. The

little amount time that it takes to check your credit report could end up

being the difference between a high rate loan and a low rate loan.

Credit Score? What Is It?

Your FICO credit score is more than just a number. If you understand how your

credit score is calculated you can use the information that is currently on

your credit report to help you maintain or improve your credit score. Credit

scores range from 300-850 points. The higher the number, the better your credit

rating is. The higher your credit rating is, the better the chances of getting

you a low rate loan. Your credit score will be determined by five different

categories. Some items will have a greater affect on your credit score than others.

Credit scores analyze a borrower's credit history considering numerous factors such as:

* Late payments

* The amount of time credit has been established

* The amount of credit used versus the amount of credit available

* Number of requests for your credit report in the past 6 months by other

credit companies

* Negative credit information such as bankruptcies, charge-offs,

collections, etc.

There are really three FICO scores computed by data provided by each of the three

bureaus--Experian, Trans Union and Equifax. Some lenders use one of these three scores,

while other lenders may use the average, or middle score.

In conclusion, the best way to be assured of getting the lowest rate possible, is

be reviewing your credit report before requesting a loan. With your credit report

already in hand you will know what to expect, when you do apply or a loan, and you

will have time to dispute possibly inaccurate items on your report.

About the Author:

Mike Miller is the founder of CreditPaths.com, and informational gateway providing

infomation and resources for anyone in search of credit, from credit cards, to loans

and credit repair.

Usage Guidlines:

You may use this article anywhere you would like so long as the article remains

unaltered, the link to CreditPaths.com stays in the footer.

About the author:

About the Author: Mike Miller is the founder of CreditPaths.com, and informational gateway providing infomation and resources for anyone in search of credit, from credit cards, to loans and credit repair.

Usage Guidlines: You may use this article anywhere you would like so long as the article remains unaltered, the link to CreditPaths.com http://www.creditpaths.com stays in the footer.