Only About Half of New Car Buyers Know Their Credit Score
December 19, 2007
According to a survey taken by automotive web site BuyingAdvice.com, only 56 percent of online car buyers know their credit score, a crucial component in negotiating the best rate on a car loan.
The survey was taken among users of the web site which provides consumer advice and new car price quotes. All of the participants had requested a price quote on a new car from the site and stated that they were within 30 days of making a new vehicle purchase.
The results come on the heels of an earlier survey by the web site that showed that only 40 percent of car buyers arranged their financing prior to requesting a price quote.
Despite the availability of credit reports from the three major bureaus and various online sources, the results seem to indicate that consumers are slower to research their car financing than the cost of the vehicle itself.
Only 39 percent of respondents reported they had requested a credit report within the last three months; and only 35 percent obtained a credit report from more than one bureau.
The buyer’s credit score is always a primary factor in the loan rate a buyer receives. So, the size of a buyer’s monthly payment is closely linked to an individual’s credit score. Consumer experts recommend checking reports from all three major bureaus for errors before making a major purchase such as a car or house.
Despite the number of consumers who did not know their credit score, 45 percent of the sample said they had taken steps to improve their credit score prior to applying for a car loan. The survey sample was based on responses of 1253 online car buyers.
The survey was one of a series being conducted by BuyingAdvice.com which processes 50,000 online price quote requests each month. The surveys together provide a telling snapshot of the current online car buying market and the factors which influence buyer’s decisions.
BuyingAdvice.com is a consumer advice and Internet price quote site featuring tips and advice for car buyers, new car reviews and the latest news and information from the automotive world.
