Know Your Credit Score Before Applying for an Auto Loan
By John Campbell
It is important to know what your credit
score is before you apply for an auto loan.
Finding out your current score ahead of time
will help you determine what lenders may open
a new line of credit for you and what rates
you may qualify for.
To obtain your official credit score
you will want to obtain a copy of your
credit report from each of the three national
credit bureaus - Equifax, Experian and
Trans Union. Although Equifax is the most
widely accessed credit bureau, lenders
may get their reports from one of the
other two bureaus. An error on any one
of these reports could lower your score
and result in you being denied credit.
Listed below is the contact information
for each of the national credit bureaus:
Equifax
Equifax Credit Information Services,
Inc.
P.O. Box 740241
Atlanta, GA 30374
1-888-766-0008
www.equifax.com
Experian
National Consumer Assistance Center
P.O. Box 2002
Allen, TX 75013
1-888-397-3742
www.experian.com
TransUnion LLC
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
www.tuc.com
To protect your privacy and verify your
identity, each bureau requires that you
provide your full name, proof of current
address, addresses and Zip codes for places
you have lived in the past 5 years, date
of birth and social security number.
If you are ever denied credit for any
reason, you can get a free copy of your
credit report from the national credit
bureaus. Otherwise, the cost to obtain
a copy of your credit report is usually
around $9 but may be cheaper in some states.
You will need to request your credit score
separately. Experian charges an additional
fee for a credit score request, with a
combined $14.95 charge for both.
Once you obtain your credit score you
will know how easily you can get an auto
loan with good rates and terms. The closer
your credit score is to 750-850, the better
off you'll be. If you credit score is
in the 600 range or below you will want
to find out from lenders what the range
of credit scores they will accept before
applying for any loans.
Finding out what range of credit scores
lenders will accept may also help prevent
your credit score from being reduced further.
Every time a lender checks your credit
score, the credit bureaus make a record
of the inquiry. Too many inquiries can
be seen as a sign of financial instability
and your credit score could be lowered
as a result.
The time you take to find out your credit
score on your own, will save you time
and hassle later on as you begin searching
for an auto loan that is right for you.
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John Campbell is the writer and editor
of CashBuzz, A financial portal for the
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