It is considered good to have a credit score of 700 or higher, which meets the credit requirements for the purchase of a vehicle. Many factors are used to calculate your fico score, including payments you made, use of the data and a good mix of Primary Tradeline reports in your file. If you have a good score, like 700 or higher, cars are one of the most straightforward items to finance. If you achieve this score, you will be placed into the lowest risk category to receive authorization for an automobile.
Why you can dispute anything from your credit report
The credit rating agencies want you to think that they doing an efficient job reporting your financial history. The truth is they do a below average job which is why there is a good chance that your credit report contains at least one error and this can be very damaging and impact your life.
Is 700 a good credit score to buy a car?
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Statistics from the National Association for State Public Interest Research Groups:
79% of all credit reports contain at least one error.
54% of personal information contained in the survey is inaccurate, including a name that was misidentified, incorrect birth dates, an incorrect Social Security number or no address at all.
30% listed paid off and closed accounts as being open. If there has been a late payment on any of those accounts it can be detrimental to your credit report.
22% have the same loan listed twice which affects the debt to income. If there are duplicate late payments, your score is penalized twice.
8% did not include a major credit card, loan or mortgage which would have provided positive credit and increased the borrower’s score if it had been included.
The truth is 4.5 billion credit information files are processed each and every month by approximately 30,000 data entry clerks. A 1% error rate would amount to 45 million errors will be made every month. Therefore, it is important to have this knowledge which will give you the confidence to repair your credit. Understand that when you are disputing negative items on your credit report, you’re not doing something out of the ordinary.
Know your rights. The Law’s protecting you!
The US government is making too many mistakes in penalizing those who are not guilty. In the interest of protecting its people, it was forced to take action and adopt laws. You know, the law is meant to protect you and it won’t require you to keep negative information on your report.
These are things you need to know:
- All negative information must be deleted if it cannot be proven or verified.
- Any negative data have to be deleted if it is not proved or verified.
- If grace or pardon is extended by the creditor, the negative information must be deleted.
- If a creditor wants to keep you as a customer and they think it will make you happy and continue to do business with their company, the negative information may be deleted.
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How to obtain good credit and is 700 a good credit score to buy a car?
Credit Success starts with removing all negative information on your credit report and then you start building your credit to get approved and maximize your financial future.
- ESTABLISH CREDIT IN YOUR OWN NAME If you are just starting out, you can add an authorized user to help get established but get primary credit lines immediately! You need a minimum of three accounts to get approved to buy a home. You need established credit for important things like qualifying to rent an apartment, buying a car or house or condominium.
- KEEP YOUR ACCOUNTS OPEN. The older your accounts the better. You get more points for longevity. Closing a credit card can hurt your credit score
- HAVE 3-5 MAJOR CREDIT CARDS. Pay them under 20 percent. The more you use your cards and pay the higher and faster your credit limits will increase.
- ALWAYS PAY ON TIME.
- ONLY USE ONE FORM OF YOUR NAME ON YOUR CREDIT CARD ACCOUNTS.
- MAKE SURE YOUR CREDIT CARD ACCOUNTS REPORT THE MAXIMUM LIMIT.
- SET UP A SYSTEM FOR PAYING YOUR BILLS ON TIME LIKE AUTOMATIC PAYMENTS.
- PAY YOUR RENT AND MORTGAGE ON TIME.
- DO NOT TAKE OUT A LOAN WITH A FINANCE COMPANY. It will make you look like a desperate consumer. Build, borrow and build relationships with banks
- BUILD YOUR PERSONAL CREDIT AND GET 0% BUSINESS CREDIT CARDS UP TO 250k IN 4 MONTHS. No personal guarantee cards that report to the business credit bureaus.