Buying a car is an uneventful process, if you have excellent credit. But if the car buyer has suffered identity theft, purchasing the car you want can be much more difficult. Having a car stolen is limited to one physical event, but identity theft damages will linger on causing repeated financial damages. Even after victims have reclaimed their lives and identity information, they should be aware of the damage to their credit when purchasing a vehicle. Get approved for a car loan in as little as 60 seconds: https://completeautoloans.com/application-form/.
Here are 3 big credit factors affected by identity theft for car buyers:
1. Low Credit
After identity theft thieves use your credit information to get new loans. Because of this your credit may be lowered for many reasons. Repeatedly applying for new loans looks bad on your score. On top of that, identity thieves open new lines of credit but leave you with the unpaid balances. Taking these blemishes off your credit score will take significant time and effort. If these negative marks on your score are not removed you’ll have a much more difficult time getting an auto loan.
2. Loan Approval Failure
Bottom line, you may get rejected for a loan. If your credit score is below, 600, a car buyer may not receive a loan. A credit score below 600 is considered high risk to creditors.
3. Increased Interest
If you are approved with a loan, the interest rate may be higher due to the overall credit report. Car buyers will have less to spend on a vehicle due to higher interest rate. The higher interest rate will increase your monthly payments, thus taking away from the total loan principal available to purchase. It is important to check your credit score routinely for false activity, so identity theft doesn’t go unnoticed — you can get your credit report for free from completeautoloans.com. To keep your information safe, only provide information online and by phone to trusted sources.