Many consumers feel that credit reports and scores are confusing and intimidating. This makes sense when you consider the fact that a number has the power to make your life easier or cause extensive frustration.
You need to remember that the more you know about your credit score (and credit scores in general), the more you can do what is necessary to improve your score. Likewise, it is vital to review your credit report for errors periodically.
These terms are incorrectly used interchangeably, which adds to the confusion for those trying to understand their credit.
Your score will fall somewhere between 0-1000 or 0-1200, depending on which reporting agency you consult.
You have the right to a free copy of your credit report for free every three months. Some reporting agencies will give you access to your credit score for free. You can contact the three reporting bodies at these numbers:
Credit scores carry so much weight because they are a financial snapshot of how responsible you are with money, particularly credit. It is one of the first things a lender will consider after you apply for a loan. Lenders want to approve loans to borrowers who have a good history of repayment and on-time payment. Typically, any financial transaction involving borrowing will involve the lender checking to see your relationship with credit.
Your credit score also holds the key to interest rates and loan approval. The scores are separated into categories as follows.
Understanding the fundamentals of credit, credit scores, and reports is necessary when determining if applying for a car loan will help or harm your credit. When you apply for a car loan or any other line of credit, the lender will run a credit check before approving or denying the loan. This is known as a hard credit inquiry. They are a requirement for several loan applications, such as:
While a single hard credit inquiry will not usually have a significant impact on your credit score, creditors look at several hard inquiries as red flags. This is because you appear to be at a greater risk since there is a record of you repeatedly trying to get more credit. For this reason, it is crucial that you know the minimum requirements for the loan and that you meet them. You should also be aware that every hard credit inquiry stays on your credit report for two years, even if the loan was not approved.
Seeking a car loan is not a negative move on your part. Applying for a car loan can have a positive impact on your credit score. Once you get approval for the loan, you will have another type of credit on your report. Also, as you make your repayments on time, your credit score will improve. One way to make sure your payments are on time is to set up automatic payments on your loan. You will have one less thing to remember, and you will boost your credit score.
When you decide to apply for a car loan, you may want to look at all of your financing options. You may find friendlier terms and faster approval by skipping the big banks and looking elsewhere.
With years of experience in the industry, Loans Unlimited has an extensive network of lenders who can provide the financing for a car loan, even if your credit is poor or you are a first-time borrower.
There are several kinds of loans available, including:
Our lending experts will connect you with a lender who will meet your needs and help you get the car you want with the best terms possible. Each lender we work with has their lending criteria and terms. Typically, they will want proof of income, assets, and records of your debts.
Having many choices of lenders means you have the flexibility you need, and we can create the best outcome. Loans Unlimited helps you explore many options so you find the best fit. The result is much better than if you approached one of the big banks or a large lending institution. The big banks will give you the standard option take it or leave it.
If you are looking for a car loan but are not sure about your chances of approval or would like customised terms, reach out to Loans Unlimited. Our experts have helped hundreds of borrowers find the right loan with the best terms, and we can help you too.
Loans Unlimited are Perth and Western Australia’s premier loan and finance brokers. We have helped thousands move towards their financial goals by offering lower rates and faster approvals when it matters. Financial services are provided by Total Biz Pty Ltd T/A Loans Unlimited ABN 78 624 937 882 ACL 506875.
* The comparison rate shown is for a secured loan amount of $30,000 over a term of 5 years based on monthly repayments. Warning: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Any calculations or estimations do not constitute an offer of credit or a formal credit quote and is only a calculation of what you may be able to achieve based on the information you have entered. It does not take into account suitable product features or loan product types. Rates + repayments shown are based on user inputted data. All applications for credit must be verified prior to the formal assessment process. All applications for credit approval are subject to lender credit approval. Approval is not guaranteed.
