{"id":172,"date":"2018-07-19T12:00:00","date_gmt":"2018-07-19T12:00:00","guid":{"rendered":"http:\/\/www.consumerslaw.com\/blog\/what-auto-lenders-check-your-credit-report\/"},"modified":"2020-03-13T16:56:22","modified_gmt":"2020-03-13T16:56:22","slug":"what-auto-lenders-check-your-credit-report","status":"publish","type":"post","link":"https:\/\/www.consumerslaw.com\/blog\/what-auto-lenders-check-your-credit-report\/","title":{"rendered":"What do Auto Lenders check on your Credit Report?"},"content":{"rendered":"

When you apply for an auto loan, lenders will perform a credit check on you. Your credit affects whether or not you\u2019ll be approved for the loan, and the interest rate for the loan. The interest rate and terms of the loan have a major impact on how much you will end up paying overall, so it\u2019s important that you know where your credit stands BEFORE<\/strong> you apply for an auto loan. When you apply, lenders will look at the following components of your credit file.<\/p>\n

<\/p>\n

Payment History<\/h2>\n

Before you are approved for a loan, lenders want to be sure that you have a history of making payments in full and on time. This is a reflection of whether or not you\u2019ll make timely payments on the loan. If you have a history of late payments, it may be more difficult for you to get approved for a loan.<\/p>\n

Status of Accounts<\/h2>\n

Your credit report lists the status of each of your open accounts. If one or more of your accounts is late or in default, it can signal to a lender that you may be experiencing financial hardship and won\u2019t be able to make timely payments on a new line of credit.<\/p>\n

Credit Utilization<\/h2>\n

Many people don\u2019t realize that the amount of credit they use on a monthly basis has a significant impact on their credit<\/a>. Not only should you avoid maxing out your credit, you should strive to only use 30 percent of your credit limit. This means that if your credit limit is $1,000, you shouldn\u2019t spend more than $300 each month. Credit utilization is an indicator of how responsible you are with your credit.<\/p>\n

New Credit<\/h2>\n

Lenders will also look at any new accounts you\u2019ve opened. Multiple new lines of credit may be a red flag to a lender. It\u2019s also worth noting that each time a lender pulls your credit, it\u2019s considered a hard inquiry<\/a>, which temporarily lowers your credit score.<\/p>\n

Length of Credit History<\/h2>\n

Lenders will also look at the length of your credit history. If you don\u2019t have a well established credit history, it may make it more difficult for you to get approved for a loan, or you may be approved at a higher interest rate.<\/p>\n

How to Check Your Credit Report<\/h2>\n

Determine how your credit stacks up by checking your report regularly. When you\u2019re familiar with the information on your credit report<\/a>, you\u2019ll have a better idea of what to expect when you apply for an auto loan.<\/p>\n

You can request a free credit report<\/a> from each of the three credit bureaus, TransUnion, Experian, and Equifax , every 12 months.<\/p>\n

Shop Around<\/h2>\n

Before you sign on a loan, take time to shop around<\/a> for loan terms and interest rates that suit your budget. Certain lenders may offer lower interest rates, which can mean paying less in the long run.<\/p>\n

Seek Legal Advice<\/h2>\n

Flitter Milz is a consumer protection law firm that pursues matters against lenders, debt collectors and the credit bureaus. If you have issues on your credit report that are keeping you of getting approved for a car loan, Contact Us<\/a>.\u00a0 There is no cost for the legal evaluation.<\/p>\n","protected":false},"excerpt":{"rendered":"

When you apply for an auto loan, lenders will perform a credit check on you. Your credit affects whether or not you\u2019ll be approved for the loan, and the interest rate for the loan. The interest rate and terms of the loan have a major impact on how much you will end up paying overall, … <\/p>\n

Continue reading What do Auto Lenders check on your Credit Report?<\/span> →<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,3],"tags":[38,44],"_links":{"self":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts\/172"}],"collection":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/comments?post=172"}],"version-history":[{"count":13,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts\/172\/revisions"}],"predecessor-version":[{"id":1476,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/posts\/172\/revisions\/1476"}],"wp:attachment":[{"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/media?parent=172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/categories?post=172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.consumerslaw.com\/blog\/wp-json\/wp\/v2\/tags?post=172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}