Say you’re growing tired of your old car and want to invest in a better-quality used model. What do you do? While you may be tempted to jump right into the buying process, you need to start by determining just how much you can afford to spend on a used car. This all starts with knowing your credit score, as the number plays a major role in your budget.
Why know your credit score
So should you know your credit score? The answer is a resounding “duh.” Credit scores play an important role in all aspects of your finances, especially if you’re considering investing in a used car. It affects car loans, monthly payments and much more, and you need to know the number before jumping into a big purchase.
How to find out
Once you’ve made the easy decision to know your credit score, you’ve got to step up to the plate to figure it out. Plenty of websites and resources are available to provide free credit reports, and these can give you insight into your spending habits and personal finances.
In the near future, however, getting your credit score could be as easy as contacting your bank. Banks provide the most accurate reports, and as such they can give you the information you need to know, including ways to improve your score and other important data.
“Credit reports and scores can determine the terms of people’s mortgages, whether they qualify for auto loans or if they are eligible for different credit cards,” Richard Cordray, the head of the Consumer Financial Protection Bureau, told NBC News. “Making consumers’ credit scores freely available on their monthly statement or online makes it easier for them to spot problems with their credit report.”
When you see it – and wish you didn’t
Say you get a glimpse of your credit score and – yikes – it’s not a pretty sight. First of all, don’t panic: It is not the end of the world. You can spend some time figuring out what to do to improve your finances, but that doesn’t mean you have to put off buying a used car. There are facilities in the New York/New Jersey area that can provide you with auto loans and financing options.
Even if your credit score is less than stellar, you can still find ways to afford a used car. At New Jersey State Auto Auction, the financing department is on hand to help approve you for an auto loan, even if your credit score leaves something to be desired. Check out what the facility has to offer and you may drive away with a high-quality used car.