19 August 2007 - 12:36Your credit score is important

When you are getting a car loan, your credit score is one of the most important factors. Before you set out on purchasing a car, it is best to have a loan approved so you know how much you can spend. This also stops salesmen from pressuring you into options you do not need. 

Before you even set out to get a car loan, it is a good idea to check your credit score yourself. By doing this you can see if there are any errors on you credit score and get them fixed before applying for the loan. This can potentially raise your credit score and therefore help you get a better interest rate. 

The FICO credit score is not just a number. It is an extremely important number than can save you thousands of dollars if you can improve it. Credit scores range between 300 and 850 points, with the higher the number, the better your credit rating is. Your credit score is determined by five different categories. 

• Any previous late payments
• The amount of time you have had established credit
• The amount of your credit available versus the amount of credit used
• Number of requests for your credit report in the past six months
• Any negative credit such as possible bankruptcies or collections.

 There are three different providers who issue FICO credit scores. These providers are Experian, Transunion and Equifax. Some car loan issuers use one of these providers, while other use the average of all three.