When applying for credit at an auto dealer for the purchase of a vehicle, the dealer's finance office will request a copy of your credit report. This credit report contains several pieces of information. This information will tell the dealer whether you qualify for a loan and the terms you qualify for on the loan. The credit report may be requested from any credit reporting bureau and will contain the following pieces of information.
Your personal information will be included on the report, so the vendor can verify your identity. This information goes beyond your name, date of birth, and Social Security Number; your current and previous addresses and work history will all be included. This information just provides one more layer of security to ensure that people with similar names and personal details don't have their information confused or compromised.
This is a large and very important part of your credit file. Your comprehensive credit history is reported to include creditor name and address, status of account, highest balance and current balance, and your payment history. This information helps creditors gauge how much debt you have, and whether you have problems making payments on time. Your delinquent and charged-off accounts (if any) will be listed here as well, Again, these negative entries will tell a potential creditor if there may be future problems with your ability to fulfill your obligation to them if they offer you credit.
Your credit report will also give the potential creditor an idea of your debt to income ratio. While it won't give them the full picture, since most utility accounts and living expenses aren't included, an idea of your credit cards, charge cards and installment loans will help a creditor see if you are maxed out for credit, or if you have room in your budget for the auto loan you are requesting.
Some applicants wait until they are in the loan application process to find that they have credit problems that will keep them from obtaining a loan. This is not a good situation for the applicant or the loan officer. It is important to check your credit report on a regular basis and correct any discrepancies immediately, even if you don't plan to apply for credit anytime soon. You never know when you will need a loan, so it's best to be prepared in case you need to utilize your credit for any reason.
Click the link for information on credit reports for auto dealers or do an online search.