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What does it take to buy a car these days? This is definitely a viable question given the state of the economy and our nation’s current credit crisis. Before you spend too much time thinking about which car you want to buy, it’s as well to understand what it takes to afford a car, what paperwork you need on hand, and what you can do to minimize your overall expenses. Ironically, credit score remains the single most important factor when it comes to financing a car purchase. If you need a loan to buy a car, you need to know your credit score. Your score is the major determinant of your rate.. A good credit score helps you establish a low interest rate. A low score invariably means you’re going to be paying an extremely high interest rate. Although you may not know this, your credit score also plays a hand in determining how much you pay for car insurance rates. In short, you save yourself a fortune by having a good credit score. Maintaining a high credit score is an ongoing process. You cannot simply start cleaning up your credit score as you set about buying a new car Further, banks may reject your application if you have disputed any item on your credit report. Unfortunately, it takes between time to clean up your report after a dispute. You should not apply for any form of credit until all disputes are resolved and you can be totally sure about your FICO score with all three credit bureaus. So what should your credit score be for you to secure a car loan? A “Prime Borrower”, beloved of lenders, has a credit score above 680. Prime borrowers get the best treatment from creditors, which means, of course, that they get the most competitive rates. Anyone with a credit score below 680 carries the delightful title of “sub prime”. A “sub prime” borrower can expect to pay a much higher APR thank their primary borrower counterparts. They should also expect to pay higher insurance premiums. Anyone with a credit score below 550 should not expect to secure a reasonable car loan. Honestly, with the amount you would have to pay as an APR, it would be far better to put energy and time into cleaning up your credit report and improving your score. You should always know your credit score and the details for credit report. You should not even consider applying for a car loan until you have an up-to-date, recent copy of your credit report in hand. If you have a low credit score, you need to take measures to clean it up before you apply for a car loan. Generally, this involves steps such as closing old accounts, getting your credit card balances at least 30% below the credit limit on all of your accounts, removing address errors and evidence of any other clerical error from your file, and getting charge offs removed from your file (this involves speaking to your creditors directly and courting their cooperation). The benefits of auto financing online are substantial. First of all, you tend to pay a much lower APR when you go to online lenders versus dealers or traditional creditors. You can also avoid headaches and the games of orchestrated via dealer financing by applying to an online lender. Online, you can also get faster approvals than via traditional systems. In fact, most online loans are approved in a matter of hours so long as the application is made during normal business hours (and not too close to the end of the day). You shouldn’t, in any case, be kept waiting more than a day or two. One of the best things about going to an online lender, however, is that you avoid hidden fees and you can get your paperwork in order within a matter of days. In reality, it doesn’t matter where or when you buy, you have to making financing a primary focus of any car purchase. Buying online and securing your financing online has many obvious advantages. You protect your personal information, preserve your rights, and secure maximum disclosure of financial information so you walk away with the best possible deal. For more information about finding your next car online, visit AutoBidsOnline.com.

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