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 for a loan, and you
will have time to dispute possibly inaccurate items on your report.

Mike Miller is the founder of CreditPaths.com "CreditPaths.com - Credit Options for every credit rating", an informational gateway providing infomation and resources for anyone in search of credit, from credit cards, to loans and credit repair.