What you Should Know about Credit Score Scam
Finance managers see so many credit reports cross their and know more about consumers than most people. If you bought any product with in-store financing, even though it is paid off, it stays on your credit report. This tells a finance manager you are good for paying high-interest rates. Having more than one or two retail accounts instead of one major credit card shows, you don’t mind paying high-interest rates. If you never close your old accounts this tells a finance manager you are not very careful with your credit or credit score. This tells a car dealer you are ripe for paying a higher interest rate, and unless you know about your credit or credit score, you could be in for a costly loan term. That`s the way the credit score scam occurs.
A finance manager can tell you anything about your credit report and if you do not know, what your report says about you in can cost you in the end. Financing $20,000 at 9% for five years and financing at 7% can cost you about $1149 in the difference for the life of the loan.
A low-interest rate is important when buying a car. Check that your credit report is up-to-date and all negative marks are removed. The things that can put your credit score in a negative light are late payments, non-payment, bankruptcies, repossessions, and liens. Knowing your credit score helps to protect from credit score scam.
Federal law allows a consumer to one free credit report from all three credit reporting bureau a year. You can go to the sites and request your free report from Equifax, TransUnion, and Experian. These reports do not include your credit score, never the less you can see what kind of credit you have by looking at the report. Keep in mind also that negative credit drops off after seven years so your credit may be better than you thought. You may qualify for a lower rate from a bank or credit union.
The best advice for any consumer in the market for a car is to be smart about your credit. It will help you to avoid credit score scam and save you thousands of dollars in the end.
If you have come across car dealer fraud when shopping for a vehicle, don`t hesitate to contact dealer fraud attorney Hovanes Margarian at (818) 553-1000.