Are you nervous about taking on debt for a new (or new-to-you) car? While it’s wise to avoid unnecessary debt when possible, it’s good to understand that there are several legitimate reasons why you might need to take on debt over your lifetime. Financing an unexpected bill, buying a home, or financing the purchase of a new vehicle are all respectable reasons to borrow money.
Buying a car is exciting—especially when you know what you want in a vehicle, you’ve found a dealership that has what you’re looking for, and you’ve established a general budget. While all of those details are certainly important, don’t make the common mistake of overlooking the financing piece of the puzzle as well.
While it may come as no surprise that great credit works in your favor when applying for a loan, many car buyers are shocked to discover that one of the most common issues with an individual’s credit isn’t due to a poor track record of financial mismanagement, but rather errors made by creditors or credit reporting agencies! In order to ensure you’re getting a fair interest rate on your auto loan, follow these tips for finding and fixing any credit report errors that could be affecting your score.
In early September, media outlets ran wild with details about a data breach that took place at one of the country’s three major credit reporting agencies. Equifax announced nearly 143 million consumers were affected, with their personal information like date of birth, social security number, and home address compromised in the breach. Also, credit card numbers for an estimated 209,000 Americans and credit dispute documents for 182,000 consumers were compromised. In the wrong hands, these identifying details could be used to open new credit accounts that have a harmful long-term effect on an individual’s credit history and score.