Friday 13 June 2014

What Should Be The Credit Score For Car Loan Approval?

When you apply for an easy auto loan, you look for number of advantages. Whereas the lender when approves your loan he or she looks into the credit report of your generated from any one the three popular credit bureaus.


 
What is the score figure, which a loan applicant needs to apply for a car loan?

• If you have a credit score of above 680, you will be tagged as a prime borrower. The loan institution will grant you a low APR loan.


• If your credit score is below 680, you are a subprime borrower. You will be paying a high rate of interest.

• If you have score below 550 you can have a bad or zero credit car loan.

• If you have poor score with lot of errors, then forget about a loan.


A car dealer keeps a strict eye on your FICO score while they grant a loan. The dealer knows a little better about your score than you and keeps it a secret so that they can charge you higher rates of interest. Generate a fair credit report soon to stop your lender from lying and charge a high APR. Check your credit score free from www.annualcreditreport.com to stay alert about the hidden cost charged by dealers.

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