For the Best Auto Loan Rate - Know Your Credit Score

When it comes to getting an auto loan, your credit score is the single most important factor. Before purchasing a new car, it's best to get approved for an auto loan first, so you know just how much you can afford and so you'll be sure you're getting a good deal and you're not pressured to make a car deal on the spot.

Before even going to auto loan companies, it's best to check your credit score. This way, you can dispute inaccurate items on your report and get them fixed. This will raise your credit score and lower your the interest rates you may be charged. Make sure you shop around for the best auto loan rate possible before applying for a loan.

So what exactly is an auto loan credit score?

Your FICO credit score is more than just a number. This number is so important that it can save you thousands of dollars if you can improve it. Credit scores range from 300-850 points. The higher the number, the better your credit score or credit rating is. Your overall credit score is determined by five different categories.

Any late payments you may have.
The amount of time your credit has been established
The amount of credit used vs. the amount of credit that is available.
Number of requests for your credit report in the past 6 months.
Negative credit info such as any possible bankruptcies or collections.

There are three different FICO credit scores, which are provided by these three credit companies: Experian, Transunion and Equifax. Some auto loan lenders use one of these companies while other lenders use the average.

The best way to be assured of getting the lowest interest rate possible for your auto loan is by reviewing your full credit report before going auto loan shopping.

For Your Free Auto Loans Guide, Visit http://www.CarAndAutoLoans.com.

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