Car Buying Advice

Top 4 Reasons to Check Your Credit Score Before You Buy a New Car

Top 4 Reasons to Check Your Credit Score Before You Buy a New Car

Top 4 Reasons to Check Your Credit Score Before You Buy a New Car

When shopping for a new car, it’s a good idea to check your credit score before you go into the auto dealership. You should also check your credit score well before you pre-qualify for an auto loan. Getting a good deal on auto financing starts with a credit check. Some people are nervous about checking their credit score, because it may have a negative effect on your score. If you monitor your score regularly you should not have an issue, but you should not run a credit report every week. Below are the top 4 reasons to check your credit score before you buy a new car.

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1. Know your credit status
2. Get the best interest rates
3. Improve your negotiation position
4. Save Money on Car Insurance

Know your credit status

By knowing your credit status you have a firm handle on of the biggest influences over your car payment. It’s a good idea to check your credit several months before you plan to buy. This will give you time to challenge any errors on your report. If you find errors in most cases it will take at least 30 days for them to be removed. Everyone should know their credit score. Having a handle on your credit score can help you to get a good deal on auto financing, and it can save you money on credit card interest rates too. Managing your credit score is also a key part of home ownership.

Get The Best Interest Rates

The bottom line in credit management is saving money. If you are buying a car, saving money is an important part of the process. Everyone wants to get a good deal on their next new car, but not everyone is focused on getting a good deal on their new car financing. An additional benefit of getting great rates on your auto loan is you get to expand your car buying budget. You can go up a trim level or car class level, meaning you can get the XLT instead of the LT or you can go from driving a 325 BMW to the 525 BMW. Checking your credit is soooooo important.

Improve your Negotiation Position

Knowing your credit score will help you negotiate your loan rates and terms. Most of us don’t know if we have good credit or bad credit. After all, we don’t borrow money every day. For those of us that know we have good or bad credit, we don’t know how good or bad it really is. Checking your credit score regularly and using the tools from sites like or you can really gauge what level of good or bad credit you have well before you need to buy a car and they can give you tips on improving your score too.

Save Money on Car Insurance

Car insurance is a major part of your new car budget and is a legal requirement in most states. In some cases auto insurance can be as much as 50% of the monthly cost of owning your car. This of course depends on a lot of factors like age, type of car, driving history, where you park your car, how you drive, and what other forms of insurance you have with your carrier. Your car insurance is also influenced by your credit score. Yes, improving your credit score can make you eligible for lower insurance rates. You should get auto insurance quote for your new car (before you buy it). This will give you chance to get your arms around your “real” new car shopping budget.



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