How Your Credit Score Affects Auto Financing
How Your Credit Score Affects Auto Financing
When you apply for a loan or lease near Columbus or Cleveland, your credit score will be part of the evaluation process. We can explain how your credit score affects your auto financing, so that you will be prepared for the outcome.
If you discover that you have less than perfect credit, Find Your Ride will work with car shoppers throughout Dublin, Cincinnati, Delaware, Marysville, Grove City, and Powell, Ohio, to determine what’s best for you.
What Is a Credit Score?
Your credit score rates your ability as a borrower to pay back a loan. It takes all your loans, both open and closed, as well as any debt you carry and reviews how they were or are being handled. Your score can affect your ability to get a loan and could determine what type of interest rates you could face, depending what it is.
A FICO credit score ranges from 350 to 850. A less-than-perfect score falls between 580 to 669. You may not even know your credit score. It usually comes up when you’re applying for an auto loan or a mortgage.
Reasons for Less-Than-Perfect Credit
When you’re informed that you have a less-than-perfect credit score, you may be stunned. How did this happen? Can it be reversed? What do I do now? Let’s go over the different scenarios, so you understand the origins of this unexpected score.
Your credit score stems from the way you handle your debts. It shows whether you paid a bill off or still need to pay various debts. Your credit history shows each and every major loan or utility you have on your record.
Did you miss a payment or make late payments on a credit card? Do you have high credit card balances or delinquent accounts? Any of these statuses could lead to a less-than-perfect credit score.
You may also have a less-than-perfect score, if you inquire about your credit when you apply for a credit card or another loan. If you’re young and new to applying for loans, you may have no credit history, which leads to a less-than-perfect score.
If you experienced any type of hardship, your credit score may be affected. Car repossessions, foreclosures, and bankruptcies will affect your score, even if you cannot prevent these issues from occurring.
How Do I Improve My Credit Score?
With a little hard work, your credit score can be a source of pride. You just need to know what to do to raise it to a satisfying level. Before anything else, order a copy of your credit score from a reputable credit reporting agency. Then, review the report to see where you may have taken a turn.
To improve your credit score, pay your bills on time and pay either the minimum or more. This helps you avoid late fees or higher interest payments.
If you come across a credit card application that looks appealing, stop and think. Do you really need the card? Will you even use it? Every inquiry that you make, whether you’re approved or denied, deducts five points from your score.
We’ll Work With Your Credit Score at Find Your Ride
Are you ready to apply for auto financing near Columbus or Cleveland? Let Find Your Ride show you how your credit score affects auto financing. Then, let us help you and other Dublin, Cincinnati, Delaware, Marysville, Grove City, and Powell, OH, car buyers find a loan that fits.
Contact us online today!