You've staked out the friendliest salemen. But before you cross the dealer's threshold, check your credit history. It'll save you lots of time and embarassment. A poor credit history can mean higher loan rates and delays. And you won't know whether the big three credit reporting companies hold you in good standing until you've checked out their reports.
Mistakes are common.
They are easy to correct, but they must be spotted to be fixed. Although untimely debt repayments don't vanish from your credit report for seven years, lenders will be more receptive if you can show that you've paid your bills on time for at least two years. If blemishes remain or your financial woes are recent, you'll need to explain your circumstances to a lender in writing. Experian, recognize legitimate reasons for credit problems, such as divorce, unemployment or illness. They will work with you if you explain your situation.