I've never trusted those free credit report places. You guys have used them and not had any negative aftereffects?
If you use the government version, you won't be charged, the credit check won't count against you (the number of credit checks within a certain time frame will positively lower your score), but you'll have to pay an additional fee to get your score. Generally, every auto dealer and bank I deal with, uses a scoring system that goes from about 350 to 850. Anything over 700 and your 'debt to net' isn't much over 35%, you will generally qualify for a loan with the lowest advertised rate. The 'debt to net' didn't used to be such a big deal, but now it is. Basically it's a percentage of your net income per month as compared to what you already have going out on payments.
Some banks and credit unions get lazy with these automatic scoring systems and automatic approvals or conditions.
However, sometimes they may need to be reminded that if a guy makes $10k a month and is at 40%, he is really in better shape for a new $500 per month car loan than a guy who makes $2500 a month and is only at 30% debt to net. That's when the lender actually has to use their brain rather than simply rely on their computer to make the approval/denial and at what rate; yes, at what rate. Rates will vary tremendously based on your overall risk. The lower risk you are to the bank, the lower your rate will be. The higher risk, had some slow payments, missed a credit card payment or two and have a couple of hospitals sending collection agencies after you, your rate will generally be the max they can charge in your state. Bill Clinton thought that was terrible and placed a cap of 10% on all auto loans. Nice thought, pathetic execution and follow through. Basically, unless you are a very low risk, in Arkansas, you can forget getting a car loan in that state since the highest rate they can charge you is 10%. So, by trying to help people, he really hurt the people who most needed help.
AT ALL COSTS, DO NOT USE "FREECREDITREPORT.COM"!
To get your "free report", you have to click a small box that says you want to enroll in their 'credit montering' program for $9.95 per month, forever! They have suits against them by the attorney general of around 20 states. IMHO, they are running hard now trying to grab all the cash they can before they are shut down. Credit card companies HATE them! Can you imagine how many calls they get disputing the $9.95 they are being charged each month for what really amounts to nothing? Surprisingly enough, there are enough people who don't check their credit card statement each month that FCR.com gets them for a year or more before being cut off. I wish they were shut down years ago. They eventually will, but they are one of the biggest names that are really nothing but a scam operation.
Also, beware of your score if you pay for it. I paid for my score with Trans Union (the most commonly used source) and I got a nice long print out of my credit along with a score of 950. Yup, 950. I took just the front page around to several auto dealers, larger ones, and a couple of banks and they all told me that the highest score they'd ever seen before was maybe an 835 or so; never a 950! This tells me that the score you pay for isn't the actual score your bank or credit union will be seeing. Based on that, I'd pass on paying extra to get your score. It's likely useless.
And, yes, this is part of what I do as an occupation; teach people how to actually read a credit report and how to get good people who fell upon hard times a loan when the typical bank declines them without ever looking at any circumstances. However, some are just flat deadbeats. They abused credit when they received it and certainly do not deserve another loan.
