Going to a car dealership to apply for financing with out knowing your FICO credit score is like going on a job interview without knowing what the position is for. In order to get hired for the job, you need to have a strong resume demonstrating previous experience and expertise in the field. You also need to be prepared for different questions and situational activities that may be presented during the interview. Additionally, you want to make sure you are indeed qualified for the position and know that you have realistic goals in succeeding on the job. If you are training to be a Nurse, it would be inappropriate to apply for positions as a brain Surgeon. This is similar to pursuing a loan. If you know your FICO credit score, you can figure out what type of auto loan would be best for you. It could help to make you realize that perhaps applying for a Mercedes might not be the best fit with a credit score of a 550.

Becoming aware of your FICO credit score puts you in the drivers’ seat when you are ready to purchase a vehicle. If you know your credit score is excellent, you can expect to have little trouble receiving financing and expand your options when it comes to dealerships. Similar to finding a job, if you know you are very qualified for the position, it will help during the interview process. You would be more prepared in handling questions about the field and have had hands on experience doing similar work. You also would be more confident when answering questions from the interviewers. Similarly you could be more confident in dealing with financial institutions if you knew your credit score was excellent and had no errors on your credit report.

However, if your credit score is qualifies you as a high risk for a financial institute, your options can be limiting. Similar to looking for a job that you have little experience for, you must do your homework. You must research local dealerships that have a special finance department and concentrate on those who deal with “sub-prime auto loans”. You must understand why your credit score is so low and work on improving it. If there are errors on the credit score report, you must fix them immediately. If there were errors or typos on your resume you would seek to fix them before applying for a job.

In preparing for your professional career you would want to build a strong resume based upon related experience. When purchasing a vehicle, you want the lowest interest rate possible, which in turn would mean that your credit score is high. In order to build high credit scores, you need to promptly pay your bills on time, and never max out your credit cards. If for some reason you realize you won’t be able to make a payment on time, you must contact the lending institution and make them aware. Try and work out an arrangement or seek the advice of a financial counselor before the payment becomes long overdue. Being aware of what is on your credit report and affecting your credit score can you help you to improve it in the future. It also helps you to set realistic goals and guide your search process to the appropriate dealerships.

Author Bio: Magnus Larsen is a staff writer for NatLeads, inc specializing in auto loans http://www.afterbk.com delivering quality car loans for ten years The webs best Bad Credit Auto Loans

Category: Finances
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