Credit scores are one of the most mysterious numbers for most people – they are searched in Google by the thousands daily! The fact is, they are really very simple.

An excellent credit score is above 700.
An okay credit score is in the 600 to 700 range
Credit scores between 500 and 600 are bad news.

If your score is at the bottom of this range, there is still hope. Even after the disaster in “subprime” (bad credit) lending, the other disaster in the automobile market has worked in your favor. J.D. Power and Associates, have just come out with a report on the auto industry in the current economic climate and they have reported that dealers expect to sell to more automobiles to subprime borrowers than ever before. Good news for you.

That being said, financing companies expect to get greater rewards for taking greater risks. The lower your credit score, the riskier it is for someone to lend to you. If your credit scored is in the low 500-600 range, you can expect to pay approximately 15 percent to 17 percent interest on your car loan (depending upon what part of the country you are in – rates vary geographically).

Be sure to check your report for some of the “dealkiller” entries which have the worst effect on your credit score. For example, make sure that all of your closed accounts show as closed rather than delinquent. Banks will panic if they see things like this. It would not hurt to engage the services of a professional credit repair service – ideally a reputable one that has experience and a track record in repairing credit reports. They will know what to look for; and more importantly, how to fix the things that can kill deals for you!

The Fair Credit Reporting Act requires the credit bureaus to verify any negative information within 30 days and share the updated information with the other bureaus. Federal law gives you the abosolute right to see your credit report, and of course you may challenge any information that appears on it.

Where to get your credit report?

There are a number of places where you can get your credit report. Equifax, Fair Isaac (FICO), 360 Credit Reports… to name a few…

• Credit Reports and Scores
• Get Equifax Credit Watch Gold 3-in-1 Now!
• Start Score Watch® Today

If your credit is really bad, you may be able to repair it through the use of professional credit repair services – you will have to pay cash of course.

Some of the items on your credit report that you might be able to fix include:

• late payments,
• collections,
• charge-offs,
• bankruptcies,
• judgments,
• liens,
• inquiries,
• foreclosures,
• repossessons,
• fraud,
• identity theft,
• incorrect personal information

There are a number of places where you can get your credit report. Equifax, Fair Isaac (FICO), 360 Credit Reports… to name a few…

• Credit Reports and Scores
• Get Equifax Credit Watch Gold 3-in-1 Now!
• Start Score Watch® Today

If you are one of the millions of people worldwide whose credit falls in the lower reaches of the credit rating scale, you are facing an even greater challenge.

If your credit is bad, then interest rate on your auto loan is going to be dramatically higher than the rates enjoyed by customers with excellent credit ratings. What’s more, if the dealer knows you’re nervous about your credit score, he may try to pile on even higher finance charges, warranties or insurances, hoping you’ll be too scared of rejection to reject all of these things – in effect, using your credit insecurity to shove a bunch of expensive purchases your way that you don’t really need.

You cannot be afraid to walk away from a high pressure car dealer if you feel they are trying to rip you off or take advantage of your troubled credit history.

So you have bad credit… what now?

Are you absolutely, positively sure that your credit is bad? Do you know this only because a car dealer told you so? That is not good enough. The first step you must take is to get your hands on your credit report!

If you have not done so already, get your credit report!