You have done your research to find the best car to buy and the best time to buy it. But have you looked at your credit report and credit score? A quick look at your credit report online before you go to dealerships can save you both time and money when you're ready to make a deal.
- Do some maintenance on your credit report.
Check your credit report early to avoid embarrassing or expensive situations at the loan desk.
First, find out the facts. Before you shop for a car, get your 3-in-1 credit report from TransUnion's TrueCredit.com. This will let you compare and review your financial information from TransUnion, Equifax, and Experian.
Check to see if your 3-in-1 report is correct. If you find mistakes, you should report them right away.
Do you have a lot of debt on your credit cards? Getting rid of these or paying off small debts can sometimes help you get a better loan rate or raise your credit score.
A few months of paying your bills on time can change how lenders see you.
- Don't take on too much.
Used and practical vs. brand-new and sporty? Before you choose a car, it's a good idea to figure out how much you can really spend.
How much do you have left each month after paying all your other bills to put toward a car?
Do you have something to trade in or money to put down? These can help you get a better interest rate from lenders, which is especially important if you have credit problems.
Divide all of your monthly payments by your gross monthly income to figure out your debt-to-income ratio. Make sure to add in how much you expect to pay for your new car. Lenders might be worried if the ratio is higher than 30%.
- Do your homework about money.
If you're ready, getting an auto loan doesn't have to be stressful. Think about these things:
Be ready to talk about your job, income, home loan, and credit history.
Check the rates banks and credit unions will give you before going to a showroom to make your final deal. This will help you get the best loan deal.
You should be able to get a better deal on your next car if you have these tips and your credit report from TransUnion's TrueCredit.com. Now, go get 'em!
