How Your Credit Score Affects Auto Financing
When you finance a car, many numbers will be thrown around. One of those numbers you’ll want to keep an eye on is your credit score, as that impacts your ability to secure an auto loan you’re comfortable with.
If you’re interested in learning how your credit score affects auto financing, let Passport Automotive Group explain! After reading this article, contact our dealership to find your next set of wheels to take around Washington, DC, Virginia, and Maryland.
Understanding Your Credit Score and How It Can Impact Your Auto Loan
Your credit score will go a long way to getting an auto loan. This number is based on several factors: credit utilization, age, total accounts, etc. Credit scores are broken into several categories, including subpar, fair, good, very good, etc.
Typically, you’ll want your score to be in the high 600s and above to get an auto loan with favorable interest and annual percentage rates. The higher your score, the better rate you’ll get. Alternatively, you can still find a loan if your score is lower, but your rates may be higher.
Every lender is different, which means each one may look at your score differently. Our dealership is happy to work with you to secure an auto loan that meets your needs and budget.
How to Improve Your Credit Score
Are you in a unique credit situation and looking to improve your score before applying for an auto loan? Thankfully, there are many ways to do this!
You’ll first want to check your credit report to see if there are any errors, such as fraudulent charges or unauthorized hard inquiries. If you find an error, dispute it with your credit bureau. Having any errors wiped off your report should improve your score.
You’ll want to lower your credit utilization as best you can. This includes paying off balances every month if you’re able. The lower your balance, the more your score should increase. Additionally, make your monthly payments on time. Too many late payments can negatively impact your credit opportunity score.
Work With Our Finance Center to Lock in an Auto Loan
Are you ready to finance your next car? Our finance center is excited to help you get on the road! We can offer flexible plans and terms that coincide with your credit situation, so you can feel at ease knowing we can set you up with a loan that works for you.
Getting started is simple. Complete our finance application and sort through your options. If you see one you like, send it to us for customization. You can also swing by our finance center to discuss each option.
You can use other online tools, including our Value Your Trade tool and new and used vehicle specials.
I Want to Finance a Car at Passport Automotive Group
Now that you know how your credit score affects auto financing, you can set yourself up to receive an auto loan that meets your needs. Passport Automotive Group is happy to walk you through your options in Washington, DC, Virginia, and Maryland. So, contact us today to get started!
