| Your credit score is the most important factor to | | | | different categories. Some items will have a greater |
| getting the best car loan rate. Many shoppers make | | | | affect on your credit score than others. |
| the mistake of going to the car dealership and applying | | | | 1) How timely you pay your bills carries the greatest |
| for a loan before checking their credit report and | | | | amount of weight on your credit rating. While it is a |
| score. By checking your credit score ahead of time, | | | | good idea to always pay your bills on time, lenders will |
| you will know where you stand before seeking a | | | | look more at your recent payment history. |
| lender. If you have an excellent credit score, you | | | | 2) Amount of debt- lenders will look at your total debt |
| should expect the best car loan rate possible. Do not | | | | and the outstanding debt on your credit cards. It is a |
| expect the lender to tell you that you could save | | | | good idea to keep credit card balances well below the |
| money by applying for a loan elsewhere. Make sure | | | | maximum amount allowed. |
| you do your homework before applying for the loan. | | | | 3) Length of your credit history- how long have you |
| The little time that it takes to receive your credit report | | | | had open credit accounts? Do you use credit on a |
| from the three major agencies could end up saving | | | | regular basis. |
| you a lot of money. | | | | 4) How many credit accounts do you have open? |
| Understanding Your Credit Score | | | | What types of credit accounts do you have? |
| Your FICO credit score is more than just a number. | | | | 5) Recent credit inquiries and newly opened accounts - |
| Understanding how your credit score is determined | | | | lenders will look unfavorably upon your credit record if |
| can help you to maintain or improve your credit rating. | | | | you have had numerous recent credit inquiries or if you |
| Most credit scores will range in number from 300-850 | | | | have opened several new credit accounts in a short |
| points. The higher your number, the better your credit | | | | period of time. |
| rating. Your credit score will be determined by five | | | | |