• Before a bank or financial institution gives you credit, they will review your credit score and history. This will be the main basis for the amount of interest they are going to charge.
• The higher your credit score, the lower your interest rates are going to be when financing a new or used car. A higher score may also mean lower premiums with some insurance companies.
• The three main credit-reporting agencies are Equifax, TransUnion and Experian. You can check your own credit score with these companies before you dive into auto financing.
• Your credit score is based on several common factors – payment history, amount of debt owed, types of debt and others. Different companies consider different factors, but these three are the most common.

These are just a few facts that may help you understand your credit score better when it comes to financing your next car. Use these facts to help you make a more informed decision about which car to purchase.

1. Get a copy of your credit report. You can legally get one free copy of your report each year by going online to one of the many websites that offer it. You’d be surprised how often mistakes are posted to your credit report that can bring down your score significantly. By asking the creditors to make the necessary changes, you can improve your credit score.

2. Pay off some debt. If you have old debts, you might be able to settle them for half of what you actually owe with a simple phone call to the creditor. The more you can pay off, the better your score will be.

3. Keep old accounts open. Many people think closing their credit accounts will improve their score. However, part of your score is based on the length of time you’ve had credit. By keeping your oldest accounts open and in good standing, you can boost your credit score for financing a used car.

Use these tips and getting a decent interest rate at your used car dealer should be rather simple.