Does Auto Credit Express do a credit check?
Our readers often ask us how much their credit will be affected when they use our service. first of all, Auto Express Credit is not a lender, so we never draw on your credit. But that doesn’t mean your credit won’t be checked. Let’s take a look at how the process works and how you can get the most out of your shopping experience with the least amount of damage to your credit.
Why is my credit withdrawn?
You cannot be approved for most types of financing without a lender first examining your credit reports and scores. People keep asking us questions about this part of the car loan process. Take this question we received recently:
“I let my request expire. If I had to reapply, are you having a difficult credit application and could you potentially deny me credit for a car? “
When you complete our quick and free auto loan application form, you are asking to be put in contact with a dealership in your area who works with people in difficult credit situations such as bad credit, no credit, and even bad credit. bankruptcy. We are not a lender, so we are not the ones who draw on your credit.
However, the partner dealers we work with send your request to their lender or lenders to see if they are able to help you get the loan you are looking for. When this happens, your credit is taken (looked at).
In order for a lender to determine if you are a good fit for them, they look at your credit reports and this is called a tough investigation or a tough investigation. These types of credit inquiries are started when you begin the credit application process and can lower your credit score temporarily, but the drop is usually only five to 20 points for up to 12 months.
On the other hand, if you don’t apply for a new line of credit, like all the prequalified credit card offers you get in the mail, or if you check your credit yourself, this is considered a draw. sweetness. These do not hurt your credit score.
Can I minimize the damage to my credit score?
The more space you search, the more damage can be done. This is because there is a tactic you can use that allows you to purchase a specific type of credit in a short period of time – usually two weeks. This is called buying rates.
By applying for several loans of the same type within two weeks, the credit bureaus can tell that you are looking for a certain type of credit, and not just willy-nilly. If you keep your loan search at the buying rate window, all credit checks show up on your reports, but one hard blow has an impact on your credit score.
Rate shopping allows you to compare interest rates and loan terms between a few lenders without each damaging your credit score. Done correctly and quickly, you can reduce the damage that difficult investigations cause to your credit score and choose the right auto lender for your situation.
How Auto Loans Affect Your Credit
Car loans can impact your credit in several ways; both good and bad. It all depends on how you handle the loan. If you buy a vehicle for cash, it doesn’t stand a chance of helping you build credit. However, if you are financing, accepting the loan and your timely payments over the life of the loan can increase your credit score.
Since auto loans typically last for several years, they can help you build a positive payment history, which accounts for 35% of your FICO credit score – the most widely used credit scoring model by lenders. However, if you’re having trouble making your payments or falling behind on your loan, the negative impacts can be devastating. Negative ratings can hurt your credit score quickly, while it can take time to build.
Ready to build your credit with an auto loan?
If you’re ready to build your credit, an auto loan is a great way to start. I don’t know where to go from here? We have what you need. AT Auto Express Credit, we have built a nationwide network of special finance dealers who are registered with subprime lenders. These lenders know that a borrower is not limited to a credit score and are more often willing to try their luck with a borrower in that boat.
Of course, you have to prove that you meet a few conditions before you can qualify for a loan. Most subprime lenders are looking for consumers with the ability, stability and willingness to take out a car loan. You can read more about the requirements for a subprime loan here on our site.
Or, if you’re ready to start the process, simply complete our No-Obligation Car Loan Application Form. We will do our best to put you in touch with a dealer in your area.