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The Most Important Number to Be Aware of in Car Financing

By Sebastian Gaydos Subscribe to RSS | July 17th 2012 | Views:
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Are you looking to purchase your car with financing? Maybe the time has come when having a car for your daily transport needs makes sense. Paying for the vehicle’s price upfront may not a comfortable idea, but you may be able to afford paying it on a monthly basis instead.

Imagine living in Edmonton, Alberta’s capital city, which is considered a major economic centre throughout Canada. Edmonton is known for its cost effectiveness, economic potential and growing infrastructure. While majority of the city’s residents are prospering, the city’s high cost of living causes some citizens to search for more affordable options for those basic necessities that money can buy, like a car. Fortunately, that same prosperity also lets dealerships offer the most affordable solutions, which, in this case, is car financing.

If you’re about to discuss financing with a car dealership, there are some things you should know. Before they grant you financing, they are going to explore certain things about you such as your income, monthly expenses, and credit report. Your credit history is what they’ll particularly pay attention to, especially for what’s arguably the most important number within.

Your Credit Score

What exactly is credit score? Your credit score is a three-digit number ranging from 300 to 900, which is calculated mathematically from all the information within your credit report. In a manner of speaking, your score shows how “credit worthy” you are. Generally the higher your credit score, the better your chances of getting your financing approved as well as better rates than others.

So why is this particular number so important? Virtually all lenders use your credit score as a basis for deciding whether to extend credit to you. Whether it’s to lease an apartment or to buy any Edmonton used cars for sale, your credit score is a lender’s barometer to assess your ability and likelihood of paying your obligations on time.

Although there are different types of credit scores, the one mostly used by many Canadian lenders is the FICO score by Fair, Isaac and Company, Inc. While credit reports are free, you’ll have to pay to get your actual FICO score. You need to obtain this score especially because Edmonton used car dealerships, or any other dealership in question, will surely require it as part of the financing process.

One more thing: your FICO score is recalculated as your credit report is updated every day. It’s generally advised that you get your FICO credit score at least once a year or shortly before applying for financing for any Edmonton used cars around. Read more on credit scores at CanadianCreditCenter.com and SmartCanucks.ca, smartcanucks.ca/credit-score-canada-why-it-is-important/, or web.archive.org/web/20070929100043/http://www.edmonton.com/eedc/ede_news.asp?page=111&toolid=1085.

Sebastian Gaydos - About Author:
For more details, search Edmonton used cars for sale,Edmonton used car dealerships and Edmonton used cars in Google for related information.

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