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Why do dealerships pull my credit report?

Why do dealerships pull my credit report?

2014 Mitsubishi Outlander GT

When buying a car, one of the most stressful aspects, aside from deciding exactly you want, is the financing process, because let’s be honest, paying in cash for a car is rare. Part of the financing process is checking your credit score, which is done by financial institutions to guarantee your ability to repay the loan. Check out Chapman Mitsubishi for the latest financing options.

Now, you could be wondering why a dealership would want your credit as opposed to just giving it to a bank. This is because a dealership has the ability to plug your credit score into a computer that “shops around” for the best possible finance deal. Not only does this help guarantee you receive the best deal possible, but it also saves you time. Going to each individual financial institution and applying for an automotive loan is quite time consuming.

If you’re nervous about your credit score and what the dealership of financial institution may see, you can review your own credit report ahead of time for free. Pulling your credit report ahead of time ensures that you have the chance to review your history and fix any errors that may appear on your report before financing.

Another reason the dealership may be eager to run your credit report is to protect themselves. When someone walks into a dealership and requests a test drive, the dealership wants to know if that person has the ability to pay for a car if they ultimately want to buy it. The fastest way for the dealer to answer that question is to run the credit report.

If you are paying by check, in many instances running your credit report is the dealership’s only line of defense against fraudulent or bad checks after hours or on weekends, when it is particularly difficult to verify available funds.

Ultimately, the dealership wants to run your credit to guarantee you receive the best possible rate, or to protect themselves from fraud. For more financing information, visit your Mitsubishi dealer in Phoenix.

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