16 Apr What creditors won’t tell you and we will: Free Credit Bureau Analysis
Financing a vehicle is an important financial decision, and even though we use our network to find the right car for you for the best price, your credit score will affect the financing rate we can get for you.
What is my credit score?
Almost everyone has a credit score, even if all you’ve done is open a bank account. Your credit score can range from 0 to 999, zero being you’ve never applied for any credit and 999 being you are the most fiscally responsible money borrower on earth.
There are different credit score models your bank uses, but most of the models use a similar criteria to calculate your credit score: payment history, credit age, types of credit, current debt, and credit applications.
The most important factor in determining your score is your payment history, but all factors can make a difference.
What is a good credit score?
A good score depends on what kind of credit you are applying for and the credit score model your bank is using, but generally above 700 is good and below 600 is not so good.
Even if you have a score below 600 we can still get you approved for financing! Keep reading.
What difference does it make?
If you borrow $50 from Grandma to start a lemonade stand and pay her back after a week she will likely lend you even more money the next time you ask.
But if you don’t make back that $50, or you go spend it on something else, Grandma might only lend you $25 the next time you ask, or might not lend you any money at all!
Your relationship with Grandma is much like your relationship with your bank, but they record all of your good and not-so-good financial decisions in your credit score.
A high credit score = more borrowing power + lower interest rates.
A low credit score = less borrowing power + higher interest rates.
If you have a lower credit score making a sizeable down payment will help lower your interest payments in the long run.
Keep in mind, financing a vehicle is a great way to rebuild credit!
Does my credit score affect my ability to finance a vehicle?
No. We pride ourselves in having a good relationship with many banks that will finance any credit score, even someone with bankruptcy claims. However, it can affect your options.
Your credit score will affect the interest rate and type of vehicle you can be approved for. Though a down payment is not required, it can shorten the term of your loan or lower your monthly payment, which will offset interest over the term of your loan.