Before applying for any new line of credit, it’s good practice to check your credit report and credit score. Auto loans are no exception. A credit check will give you a good idea of where you stand and what type of interest rates you can expect. It’s also important that you verify that all of your information is correct and dispute any inaccuracies that may be bringing down your score.
However, credit scores that fall in the nonprime (620-679) and subprime (550-619) ranges may not necessarily indicate that you aren’t eligible for a reasonable interest rate. Lenders often use different tiers according to their own business needs to assess creditworthiness.
Lenders also frequently place more weight on credit history that is specific to auto loans. Timely auto loan payments in your credit history are more important than whether or not you make credit card payments on time. Always shop around to compare rates before signing an auto loan agreement.
Seek Legal Advice
Flitter Milz is a consumer protection law firm that pursues matters against lenders, debt collectors and the credit bureaus. If a lender wrongfully repossesses a vehicle, a debt collector is abusive or the credit bureaus report information inaccurately, the consumer may have a lawsuit to pursue. Contact Us for a no cost evaluation.