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Credit Reporting and Purchasing a Vehicle

Buying a car is a big purchase.  Whether it is used or new, you want to get the best deal.  If you plan to finance the purchase and get the best price, you need to do a little homework.

Pull your credit report before you go into a dealership.  Why?

Make sure there are no problems with your credit report.  Check the report for errors.  If there are mistakes, you will need to dispute them directly with the credit bureau reporting it.  You can easily do this by sending them a letter.  Check out our website for a sample letter with detailed instructions or call an attorney today for a free consultation

Your credit scores are used by the auto industry to help determine whether you will make timely payments on your loan.  Ultimately, this will determine the interest rate you receive.  You should shop around on your own for an auto loan before you start looking for a vehicle.  When you find the car or truck you want to purchase, you can take the financing you have already lined up, or let the dealer make you a better offer.  This way you will be able to know that you got the best deal possible in terms of financing.

ALSO, be aware that car dealers make money when brokering a finance agreement with a lender.   The higher the finance charge, the more the dealer stands to make on the sale.  A dealer may use your bad credit against you in order to puff up the annual percentage rate of the loan.  Therefore, you have to check your credit report, and assure there is nothing on there that will give the dealer a reason to increase the rate of your loan.

If you are having issues with your credit and need assistance, contact SmithMarco P.C. for a free case review. 

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