Do Car Dealers Always Check Your Credit in New Jersey?

11/21/2018

One of the major concerns when it comes to buying a car is credit. Many people worry their credit will be affected when they decide to go car shopping. Generally, dealers rely on your credit score when financing a vehicle. This means they will check your credit unless you choose to acquire the car without financing. Apollo Auto invites you to keep reading as we discuss more about credit history check when deciding to buy a car.

What Do Dealerships Look for in Your Credit?

Your credit score history contains information car dealers utilize to decide whether they give you a loan for purchasing your vehicle. The reason behind this rationale is simple: you want to buy, and they want to sell. While this may sound obvious, car dealers take extra caution when deciding to offer a loan to their clients. A car dealer will be more likely to finance their vehicles to people who can pay for them. This is the primary reason for checking your credit score. But how do car dealers perform credit checks?

Car dealers can use different sources to check credit scores such as FICO Auto Score 8, Experian, Equifax, and TransUnion. These scores often differ from your credit report. This happens because car dealers utilize different credit score versions to determine whether they can offer to finance to a customer and at what rate. For instance, FICO offers an auto score that is specific to auto lenders and not the general consumers. Additionally, TransUnion, one of the three major credit bureaus, provide a credit score report called CreditVision Auto Score, which is also intended for auto lender use.

The reports pulled by dealerships include your financial history, which shows your ability to borrow and repay what you owe on time. Additionally, your credit history will show how much debt you have – outstanding debt – and your credit history length. Dealers will consider all these facts when deciding offering financing services.

Can a Car Dealership Run a Credit Check Without Your Consent?

Car dealers are not supposed to run a credit check without your permission. They are always required to ask for your consent before attempting running a check on your credit history. The only instances a dealer can pull your credit history is when you authorize them by signing a financing form, or when you have an established credit history with your selected car dealer.

Many car dealerships also have also raised the Patriot Act flag to run your credit score even when you have already qualified for a loan, or are paying in cash. This Act does not require you to give your personal information when deciding to buy a car. However, if you are spending more than $10,000 in cash, you may be asked to fill out a form created by the IRS (Internal Revenue Services) design to combat money laundering.

What Should I Do Before Going Car Shopping?

Car shopping can be stressful if you have no idea where to start. This is especially true when it comes to planning your budget and how you will acquire the car you want. One of the best things you can do before car shopping is checking your credit score. You have the right to request your credit history information once a year. It is recommended you check your rating for two main reasons. Number one you will have the chance to know where you stand credit-wise. Remember lenders will pay attention to your score to determine the rate at which they will finance your car. Secondly, you will have the opportunity to check for any discrepancies and inaccuracies on your credit report.

Checking your credit score before adventuring into the car buying universe, can help you plan your budget. Budgeting is crucial in determining the type of car you need and can afford. This can help you save valuable time and will let you avoid unnecessary stress. Additionally, people with low or no credit can also have the opportunity to finance their vehicles. For instance, many preowned auto dealers offer certified high-quality cars you can finance, even with bad credit.

Preowned Auto Dealership Serving the New Jersey Area

For more than two decades, Apollo Auto has been serving thousands of customers from the New Jersey and surrounding areas. Our pre-owned auto dealership is dedicated buying and selling top quality vehicles and providing nothing but excellent service to all our customers. All our cars go through an exhaustive, top-to-bottom, 112-point inspection. We also offer a comprehensive 3-month, 3k mile warranty on all our vehicles. Additionally, we can help you through the financing process on-site or by filling our easy and intuitive financing form online. To learn more about our services and how we can help you get the car you want, call Apollo auto today at (856) 347-5091 or contact us online.

 

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