Bad Credit, Good Deal?
Most people are careful to keep and maintain a very good credit score. The general advice is that a good credit score will help you get better interest rates when you apply for a loan. Also, service providers such as mobile phone companies or insurance agencies check your credit report to see if you pay on time. Making timely payments is a sign of being a responsible individual. Because of that, companies would naturally want to do business with you.
However, it seems that this is not the case when you purchase a car (or any vehicle for that matter). Apparently, a good credit score would not be able to help you get the best deal or the price that you want to have. Any possible loss in profits from sales to people with bad credit ratings will be off-set by profits from sales to people with good credit scores. If you have always paid all your bills on time, this is definitely bad news for you. So what should you do when you want to purchase a new car? Should you try to prevent the car dealers from checking your credit report or from notifying your own bank?
You don’t have to hide any piece of information. Even if you do try to do this, the car dealer will be able to find out anyway. One of the first things that you should do is to get a copy of your credit report and check for any inaccuracies. Credit report companies may not be obligated for make the necessary correction in your reports so you yourself must do something about this. Check your own records against the information noted in the report. If you there are any inaccuracies in your credit report, avoid consulting credit repair companies. Such companies claim to fix your credit rating, but this isn’t entirely possible. If spending your money on them isn’t bad enough, you might even find out later that your credit score is now lower from what it was before you asked help from these credit repair companies.
Having a bad credit score usually means that you have lesser options whenever you apply for a loan. But with car purchases, a bad credit score means that the car dealer will not be able to offer any add-ons or extras to the deal. A person with a bad credit core can end up paying for less than someone with a good credit score. Try to get a pre-approved car loan so you’ll know about all the terms noted with the purchase. This will make it less for the car dealer to add anything to the price tag.
