Determine your credit standing
Car loan interest rates and approval are largely influenced by your credit history. A low credit score could mean a high interest rate or, worse, your car loan may not be approved.
You can get a copy of your credit report from these sources.
Here are some things that you need to check in order to clear out inaccuracies and potentially improve your credit score.
• Duplicate debts being listed.
• Fraud or identity theft.
• Incorrect debt amount.
• Being listed as in default by mistake.
• Even an incorrect name and address.
Make sure to review your credit report once a year in order to catch fraud and inconsistencies before they affect you financially.
Note that free credit report providers use data from different reporting agencies so you may need to do some investigating if your score varies from one provider to the other.
This is where a finance broker can really help. Navigating through your credit report can be intimidating or even alarming if you do not know what to do.
What if you have bad credit?
The first thing to do is to thoroughly review your credit report and look for inaccuracies like the ones listed above. If you can find some and dispute them, your score could go a little higher.
If the credit review did not help then you may need to do a little clean up and establish a good credit history before you apply for a car loan.
Don’t worry if the car is needed immediately because we have many lender partners who cater to bad credit car loans.