If you want to
lower your credit score then go to every car dealer in town and have
them run a credit check. Every time your credit file is requested
your credit score drops by a few points. Do this enough times and
you could wind up paying higher interest rates, or denied financing
altogether.
Auto salespeople know that if they can convince you to complete a
credit application that their odds of making a sale increase
dramatically. That’s why they push you to do so. But if you visit 3
dealerships and fill out a credit application at each one that’s 3
inquiries to your credit already.
You may not think that is going to make a huge difference to your
score, but what do you think the salesperson is going to do with
your application? They’re going to send in to several financial
institutions for approval. Suddenly each dealership has sent your
request for financing to 5 separate car loan providers. You just
received 15 inquiries to your credit file. That’s enough to knock
your credit score down by 30 to 50 points, which only makes it
harder to qualify for a loan.
Some dealers who have no ethics will get your loan approved
first, and then send your application to 20 other banks to
intentionally knock your score down. Why do this? Because they think
that if they can cause you to be turned down for financing elsewhere
you’ll be forced to return and buy from them. Seriously avoid doing
business with anyone like this.
Everyone should know their credit score. Always check your credit
before applying for a major purchase like a house or a car. This way
you know your credit score going in, and you will have the chance to
correct any errors in your credit report.
You should also consider getting a pre-approved loan from a
reputable firm like Capital One Auto Finance or E Loan. Approval is
fast and you can apply online right now. Both will send you a check
overnight to pay for your car.
