Buying a Car: Evaluate Your Credit
While you have calculated how much you can afford, that does not mean that lenders will agree with your calculations. This is where your credit report comes in.
Lenders decide how much of a loan you are able to qualify for simply by analyzing your credit report. It is not personal. They do not care about your physical appearance, what you think about the state of your personal finances or how good you are with small animals. The only thing they are interested in is the numbers on your credit report.
The credit report will show your credit value (How you have been paying off your previous debts? your financial means (Do you have enough income to repay the loan?) And the debt structure (Do you have too much debt?).
For more specific about the information in a credit report information, read the section on Credit Report article here Actual free credit report.
Acquire a copy of your credit report:
It is important to know how good your credit is. If you do not have good credit, you will probably not get the best interest rate, and that will increase your monthly payment. It is also possible that you cannot ask for such a large loan amount, which means that you could not buy a more expensive car, even if you think you could afford the monthly obligation.
Request a copy of your credit report and analyze the same information that lenders will seek to decide regarding approval of your loan. You can see which areas have shortcomings and work on them. It also gives you an opportunity to make sure there are no errors on your report. It would be a shame to let your good credit history adversely affected by an error in your credit report.
The three major credit bureaus are:
• Experian – 1-888-397-3742 – www.experian.com
• Trans Union – 1-800-888-4213 – www.transunion.com
• Equifax – 1-800-997-2493 – www.equifax.com
If you have been refused credit in the past 60 days, you are entitled to receive a free copy of your credit report. Otherwise, these companies will provide a report by charging a small fee. Even if you have to pay to receive it, it’s worth doing. Why not get yourself a copy of your credit report? You can continue reading this information when you return.