Credit Score - What You Might Want to Know

image courtesy of: cafecredit.com (flickr.com)

Let's pause for a while from our car care topics. Let us instead take up one of the most important elements for owning a car - a credit score.

The credit score is the most popular number of the present generation. It has become the framework of so many aspects of our lives. Modern business and economy have, in fact, made it a basis for granting a person the opportunity to own certain possessions through credit. Credit cards, mortgages, and car loan applications are among these.

If you want to purchase a car with financing in mind, you’ll probably be concerned about your credit score. But how can you determine if your credit score qualifies you to make a smooth sailing car loan application? Please read on to know more.

What Number Makes a Good Credit Score?

You may not know it, but a majority of businesses want to see a particular “magic number” that they consider the minimum for making you qualify for purchasing anything on credit. That magic number, which is your credit score, actually happens to be 630. This is the absolute minimum. If your credit score is equal to or greater than that number, you have a good chance of getting approval for a loan. Here are the other credit ratings and their meanings:

Excellent – 760 or Higher

A credit score of 760 or more is the credit sweet spot. It denotes that you are highly responsible with your finances. This credit rating makes you attractive to lenders and creditors. Your score also makes you qualify for the lowest interest rates possible.

Very Good (725 – 759)

A “very good” credit rating is still attractive to creditors – it should not give you much of a problem as far as a loan application is concerned.

Good (660 – 724)

This credit score is still okay with creditors, and securing approval for a loan wouldn’t be much of a problem for you. However, not all lenders are willing to offer lower interest rates with it. You should, however, expect possible resistance when you ask for a lower interest, especially if you are at the lower end of this range.

Fair (560 – 659)

Although considered “fair,” this credit rating doesn’t really guarantee loan application approval, and if your loan is approved, chances are the interest rates could be a bit higher than average.

Poor (300 – 559)

A “poor” credit score is the least credit-worthy rating. It has the least chance of getting approved, and if some lenders were willing to take the risk, the interest rates would be high. A “poor” credit rating is the least any person would want to have because it is considered “high risk.” If your credit score happens to be in this range, you must strive to get out of it by making regular, timely payments on your existing loans.

If you are looking forward to making a loan in the near future, you must take good care of your credit score. Doing so can make you appealing to lenders and creditors. Not to mention you will also need to find a car shop as your choice of maintenance care for your car once you've already owned it. When you do, look for Subaru auto mechanic who would be too willing to offer their services as much as you getting a goods score on credit deserves a good credit company's trust.

Six Things to Check Before Buying a Used Car

Image credit: RP Norris (flickr.com)

Buying a used car can be a gain or a loss on your part. The result can depend on your assessment of the vehicle. As a buyer, it is important for you to consider not only the price but the overall condition of the car as well. Some used vehicles are sold cheaply, but it doesn’t necessarily follow that when you buy it, you are at an advantage. Before deciding to buy, you must first see to it that you are not buying a problem. Here are some things you need to check to make sure that the deal you are getting into is a win-win situation.

1. Reason for Selling

If you are buying the vehicle directly from the owner, you must know why he’s selling it. Some car owners sell their vehicle because it has a problem. Others sell their vehicle to raise money as a down payment for the purchase of a new one. Still, some others want to dispose of their automobile because of a financial problem, or they are just simply bored with it. If the car has a problem, for sure, its owner won’t tell you that as a reason. You should make extra effort to check the truth by asking a third party, such as the car’s maintenance mechanic.

2. Road Performance

A test drive is an important part of a car purchase, whether you are buying a new or used vehicle. You should allocate enough time for this so that you will be able to get the exact feel of the vehicle as you take it to different types of terrains. During the test, be observant of any unusual sound or smell. They are an indication that something is wrong somewhere.

3. Leaks

You don’t have to be an expert to detect obvious defects on an engine. Some important aspects you need to check are leaks and the condition of the oils used by the engine. Wet spots on specific areas, especially around the cylinder head, indicate a leak. If there is none, check the oil level by pulling out the dipstick. If it is on the “low”, there’s a tendency that the engine is burning oil. Oil that’s too dark and sticky is an indication that it hasn't been changed for a long time.

If the car is automatic, the next thing you need to check is the transmission fluid. Pull out the dipstick to see if it looks good. ATF that appears red or pink in color indicates a good transmission. But if it looks brown and has a burning smell, it is telling you the transmission is not in the best condition.

3. Battery

A car battery can be easily replaced, but it means additional cost if you happen to buy a car with an old or defective battery. Batteries that are more than four years old may only live for just a few more months. To ensure that the battery is good, check its terminals for signs of corrosion, gouges, and scratches. You should also give particular attention to its form. If it looks bloated, the battery needs immediate replacement.

4. Mileage

While it is possible to change the odometer reading, checking it still matters because it can signify the age of usage of the vehicle. Besides, many owners won’t bother to go that far just to make the vehicle appear like it is slightly or seldom used. A car with low mileage often gives the impression that it is not a battered or overworked vehicle.

5. Tires

Uneven wear on the tires means the car’s suspension is having some problems. When you see this, you can walk away from that car because suspension problems can translate to costs and driving problems.

6. Features and Accessories

The car’s lights, air conditioning system, stereo, wipers, and power windows should work well to give you the value that your money deserves. You should make sure that they are working by turning them on and letting them work for a few seconds.

Buying a used car can be daunting because your hard earned savings goes with it. Before buying one, you must be sure what to check. This will allow you to give a good evaluation of the car’s real value. If you want to make sure that all the cars offered for sale are guaranteed for quality, you should buy only from reputable car dealers. As for your maintenance needs, you can visit Subaru auto mechanic.