Don't let a mistake on your credit report keep you from qualifying for auto financing.

Incorrect data in your credit file could mean that you will have to pay a high interest rate for your car loan. This could mean thousands in unnecessary finance charges.

Know your credit score, and what is in your credit report.

The higher your credit score, the more favorable rates and terms you will be able to obtain on your next car loan.

Besides, one of the top 10 scams in auto financing is The Credit Score Scam. We had a client recently who was buying a new SUV. She has excellent credit, with a credit score of 726. So she was amazed when the dealership's finance manager told her that the best rate she could qualify for was 9.9%. He even showed her a computer printout indicating a score of 627.

Naturally, she was quite shocked by all this, since she had just obtained a copy of her credit report, and her report indicated the true score of 726.

I wish I could have seen the look on the finance manager's face when she showed him her copy showing the 726 score. He quickly changed his story and offered her a rate of 5.9%.

The story doesn't end there, however. The client wound up getting an online auto loan at 3.85%. She saved over $4,100 over the original 9.9% quote.

Don't be a victim of The Credit Score Scam. Know your credit score before you begin car shopping.

Here is how to interpret your credit score.

Please note that these are general guidelines and will vary from lender to lender.

Check your credit report online right now. You can see your credit report right away, so that you can begin the buying process. You should never walk into an auto showroom to buy a car without having a copy of your credit report beforehand. You can also get your credit report directly from Equifax, one of the 3 major credit bureaus.

Never let a dealership run a credit report on you until you have decided on a specific car and that this is the dealership you want to buy the car from. If you allow several dealerships to check your credit, it lowers your credit score slightly each time. You could end up paying a higher interest rate because of this. Keep in mind that if you request a copy of your own report it does not impact your score. We recommend you get a copy your credit report now. Just go to Equifax and download it instantly.

Once you have your credit report in hand you should review it for accuracy. Here is what to look for:

Are there any accounts you have open that you do not plan to use any more? If you have credit cards that are paid off but not closed accounts this could result in a lower credit score. Why? Because you could potentially go out tomorrow and max each one out.

Here's what to do. Contact the customer service department of your credit card issuer and request that the account be closed. Also, be sure to request that they report to the credit bureau that the account is closed. I would also ask for a letter from the credit card issuer stating that the account has been closed. If you do this it is more likely the report to the credit bureau will be made promptly.

Is there an account that was paid promptly, but not showing on your credit report? Perhaps you financed a car with a co-signer, but it is not showing on your credit report. You should contact the lender and ask them to report the credit in your name. You can also ask the credit bureau to investigate this.

Is all your personal information correct? Name, address, social security number?

Are there any accounts being reported that are not yours.

If there are errors on your credit report you should request an investigations form. Fill it out and submit it to the credit bureau. They are required by law to promptly investigate and correct any errors.