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Get Your Credit Report for Free and Get More Negotiating Power
There are many places online where you can get your credit report for free. Knowing where you stand credit wise can help you negotiate better rates when purchasing a house or a car. Whether you have good or bad credit, you should always shop for a better interest rate. Right?.
Here is the usual scenario of someone with bad credit purchasing an automobile. The customer knows they have a blemished history but they don't know how bad it is because they didn't get their credit report for free online. They go to the dealership and find a car they love. The sales person comes from the F&I office with good news that they have been approved for a loan. The customer is so happy (or surprised) they were approved, they overlook the 21% interest rate and sign the contract.
That same customer could get a better interest rate by shopping around before they get to the dealership. They won't get a prime rate but they can get the best rate for their given credit situation. This customer should get their credit report and score so they'll know which types of lenders will offer a loan. Knowing they have less than perfect credit, they will apply with lenders that deal with credit challenged consumers.
Once they get their credit report for free online, the scenario may go something like this. The customer walks into the dealership and finds a car they love. Because they know their credit situation and did their research, they know they can get a rate in the 16-18% range. The range is high but is better than 21%. This customer sees the 21% rate offered by the dealer but balks at this figure because he knows he can get a cheaper rate. At this point, the dealer can lower its interest rate or lose a potential customer. That's negotiating power!