Sep 17, 2020 / Credit

How to Research Your Credit Score Before Applying for a Car Loan

Your credit score and car loan are inseparably connected. In fact, your credit score is arguably the most important factor influencing your car loan. It impacts the interest rate you qualify for and the final price of the vehicle you buy. So, it’s important to know your score before you apply for a loan. And, it’s important to find a lender that accepts you for you, and can help people of all credit types with loans. Here are a few tips to help you know your score before you apply for a loan.

Know Your Score

When lenders look at your credit score, they’re trying to gauge the likelihood that you’ll make your payments on time over the entire course of your car loan. If your credit report includes a history of missed payments, some lenders shy away. But if you know your score before you apply for a loan, you can choose a lender that’s willing to work with you to approve your loan. Plus, you can avoid the unpleasant surprise of a lower-than-expected score during the loan approval process.

Get a Free Credit Report

Normally, you are entitled to one free credit report every year from each of the three main credit reporting agencies (Equifax, Experian, and TransUnion). According to the Federal Trade Commission, however, you can access this information once every week for free through the end of April 2021, as a result of the Coronavirus crisis. That means you can get the most up-to-date credit information possible, whenever you decide to apply for a loan. It also means you can review your credit report often to look for and fix any reporting inaccuracies.

Know What Your Lender is Looking For

The credit score you see and the credit score your lender sees might not be the same. Many lenders use what’s called an Auto Score to help them make decisions about approving auto loans. Your Auto Score is similar to your consumer credit score, but it includes information about past payment history specific to car loans. Even if it’s not as easy to access your exact Auto Score, just be aware that your lender is probably looking at your past car loans more carefully.

Find a Lender that Accepts You

After you’ve done a little research on your credit score, find a lender that’s willing to work with you to approve your loan. Not all lenders are willing to work with people with past credit problems. If your credit score is less than perfect, the helpful loan experts at Utah First can work with you to find the auto loan that’s right for you.

If you’ve been denied a loan in the past or you’re worried what your lender might say about your credit, come to Utah First where we have a no judging, just approving loan policy. We accept you for you, and we have loans for all credit types. Visit us in the nearest branch, or apply right here online! We’ll answer your questions and help get you approved for your next loan.