If you’re in the market for a newer vehicle, you’ve probably wondered, “Should I check my credit score before buying a car?” Well, you absolutely should. Understanding your credit profile isn’t just the right choice; it’s an essential one.

Why credit scores matter

Lenders use your credit score to assess their risk in offering financing to you. A higher score generally indicates reliability, which can often unlock lower interest rates, smaller down payments, and more favorable financing terms.

Conversely, lower credit scores typically result in higher interest rates and larger upfront costs. By checking your score early on, you can get an idea of your buying power and set realistic expectations for what kind of vehicle is within your reach.

How to check your credit score before buying

Did you know you’re entitled to free annual credit reports from all three major credit bureaus? Reviewing your credit reports through AnnualCreditReport.com will help you verify that the information lenders see is accurate and up-to-date.

If you discover errors — such as incorrect account balances, outdated payment statuses, or fraudulent activity — you can challenge them with the credit bureaus. Corrections typically take 30 to 45 days to be reflected in your report, so it’s wise to begin the dispute process at least one to two months before applying for auto financing.

Can you buy a car with bad credit?

While it’s possible to get auto financing with bad credit, your path may look a little different than others’. These are some of your options:

• Subprime or bad credit auto financing is for buyers with credit challenges. Lenders like Credit Acceptance specialize in helping those with limited or poor credit histories obtain vehicle financing.

• Credit unions often provide more personalized financing criteria and competitive rates compared to traditional banks

• Co-signers with stronger credit can improve your approval odds and reduce your interest rate by applying for financing with you

• Buy Here Pay Here (BHPH) dealerships may offer in-house financing options for customers who have been turned away elsewhere. These dealers often charge higher interest rates, but are sometimes the only solution for those who are rebuilding their credit.

How to improve your credit before applying

If you’re not in urgent need of a car, taking time to strengthen, build, or reestablish your credit can significantly improve your financing options. Here’s how:

• Dispute inaccuracies on your credit report and follow up promptly

• Pay down existing debts to lower your credit utilization ratio

• Avoid pursuing new lines of credit right before applying for auto financing

• Obtaining a secured credit card to show consistent on-time payment history

Worried about your approval odds?

Not happy with your credit after taking the necessary steps to review (and improve) your score? Credit Acceptance can give you an idea of the maximum monthly payment you may be approved for. Finding out is quick and easy — all you have to do is get pre-qualified online.