How Does Credit Impact Car Loans? | Sarasota FL | Near Venice

How Does Credit Impact Car Loans?

At our dealership, we get it. The cost of vehicles has gone up, meaning most people need to apply for a loan in order to purchase one. Many customers turn to us for an automotive loan. We can provide more than the loan itself: convenience, special incentives from the manufacturer and a relationship with the bank. Plus, our finance department will work with a variety of credit challenges.

When applying for a loan, it's a good idea to keep your recent credit history in mind. We consider your credit report, which is a summary of your credit history, when working with you to get a loan.

The Importance of Your Credit History

Lenders look at your credit report, when considering you for a loan. It shows your credit history, which consists of:

  • Your amount of debt
  • Your payment history
  • How long your line of credit has been in use
  • Your major debt total

When you apply for a loan, these are all elements of your credit that are taken into consideration, and they can influence what type of interest rate you may receive. Those with a higher credit score typically receive lower interest rates, as they are seen as “low-risk.”

Qualifying for a Loan

You'll probably find it's harder to get an approval from a lender if you have a history of credit challenges and no down payment. Those who are credit-challenged are more likely to get approved for a loan if they have some type of up-front payment, such as cash down or an equity trade-in.

Another way to help improve your chances of securing an approval is to have a co-signer. By applying with someone who has a higher credit score, you give the lender more confidence that the loan will be repaid in full and on time.

Gettel Hyundai of Sarasota is here to help!

Whatever your credit situation, we're here to help you get behind the wheel of a car. To get started, simply fill out our online finance application. We look forward to working with you!

If you have any questions or want to know more, give us a call or stop by our dealership at 3500 Bee Ridge Rd, Sarasota, FL 34239. Gettel Hyundai of Sarasota proudly serves customers from Sarasota and Venice.

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