What is a Free Credit Check?
A free credit check normally refers to a free credit report. Depending upon where you live, there is normally a legal obligation on the three main credit bureaus to provide a copy of an individual’s credit report free to them once a year.
In addition, many of the bureaus will also offer the customers the chance to see their credit score, but this is normally something they charge for.
Having a look at your credit report is actually a very sensible thing to do, especially if you are thinking of applying for any type of auto loan with Ford credit or any other type of finance body. The reason is simply that viewing a copy of your credit report allows you to check that the information contained in it is accurate and up-to-date.
The credit report contains a significant amount of information relating to the individual’s credit history, their credits transactions and their financial health generally.
Free Credit Check
This information is used to assess the credit bureaus interpretation of the customers creditworthiness, for allocating them a credit score that is then used to determine whether or not to lend the money and if so on what terms and conditions.
Some people also worry that when they apply for a loan this has a negative impact on their credit score. Generally speaking this is true, as certain factors affect the credit bureaus interpretation of a customer’s need for credit.
If someone is continually applying for loans and either be accepted or rejected it can tell the credit bureau a loss about that customers credit habits.
When applying for an auto loan with Ford credit or any other lender this does not apply. Made credit bureaus expect you to get quotations from alternative lenders in order to be able to compare them on a like-for-like basis.
This means that if you are applying for an auto loan, then it is a good idea to obtain tones of quotations from other sources in order to be able to compare them. Normally two or three alternative quotations should be sufficient.