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Credit_Score_is_Important_When_Buying_a_Car

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					Title:
Credit Score is Important When Buying a Car

Word Count:
400

Summary:
Your failure to know your credit score may hurt you when it comes time to
finance a car. Your salesman may try to take advantage of what you don't
know.


Keywords:
Defective automobile, vehicle defect. Lemon law, auto warranty, auto
lemon, arbitration,


Article Body:
Do you check your credit score and credit report before you go shopping
for a car? You might find out that it is well worth your while to do so,
as some auto dealers are taking advantage of the fact that many consumers
do not know their credit scores.

No one likes buying a car; the entire process is awkward and cumbersome.
Most items we buy are plainly marked with the price, but with cars, the
price is often a mystery. Then you have to haggle with a salesman and
hope that you have worked out the best price possible. Having done that,
you have to arrange financing. You can often get an acceptable interest
rate when financing through the dealer, but some dealers are padding
their bottom line by offering loans at higher rates than they otherwise
might.

The scam works like this - You negotiate your best price with the dealer
and you agree to finance through them. You fill out the credit
application and hand it over to the salesman, who has promised you some
reasonable terms. He takes off to process the application and to check
your credit report while you have a cup of coffee. He returns a few
minutes later, shaking his head. He informs you that your credit score
is only 600 and that you will not qualify for the interest rate he
offered you. He says that you will have to pay a higher rate. And not
knowing any better, you agree.

Had you done your homework by checking your credit score ahead of time,
you would have known your actual credit score and you could have pointed
out that the salesman's assessment of your credit score was incorrect.
At that point, you could insist upon receiving the more favorable
interest rate or threaten to finance elsewhere. This is a common scam
that works because most people really do not know their exact credit
score.

Learning your credit score is easy. All you have to do is visit the
Websites of one of the three major credit bureaus - Experian, Trans Union
or Equifax. For a modest fee, you can receive a copy of your credit
report with your credit score. Armed with this useful piece of
information, you can shop for a car with a bit more peace of mind,
knowing ahead of time whether or not you can qualify for the best
financing.

				
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posted:10/10/2010
language:English
pages:2