How does my credit score affect my auto loan?

How does my credit score affect my auto loan?

For a lot of people, buying a car can be fun. From selecting body style, tech gadget add-ons and features that you want to include, it's all an exciting experience. Unless, however, you're credit challenged. Not having credit that's up-to-par can make the purchasing process a bit more complicated. A variety of factors can contribute to a less-than-stellar credit score, and it can take time to rebuild. Millions of people face these same challenges.

Fortunately, we're open to working with both high and low credit scores here at Gettel Hyundai of Sarasota. We understand it can be tough to have credit that's not quite ideal, and we also know you need a vehicle. Before getting into the financing process, why not learn a little bit about what goes into less-than-perfect credit scores?

What is a credit score?

Those three digits on your credit report are crucial to determining what kind of interest rates you get. Scores range from 300-850, and a score above 700 typically means a lower interest rate. This number is based on your credit history, which can include factors like late payments on car loans or credit cards, in addition to how long you've had an account open.

What contributes to a less than ideal credit score?

It can take years to correct a low credit score, but knowledge is key. There are plenty of factors that go into your score, but we've listed some of the most common ones below.

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Late Payments

The simplest way to increase your credit score is to keep up with credit card payments. Late payments can add up over time to decrease your score.

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Missed Payments

Not paying your credit card bills is a definite way to get a bad credit score and can ultimately result in a default.

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Defaulting on a Loan

This will tell prospective finance companies that you're more of a lending risk for an auto loan since you didn't keep up with payments previously.

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Bankruptcy

Filing for bankruptcy is the most damaging thing you can do for your credit score and should only be done as a last resort.

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Foreclosure

Similar to a loan default, it sends a message to lenders that you have a history of not keeping up with your payments and that you're a risk.

How can Gettel Hyundai of Sarasota help?

Our finance team is here for you. We'll help you understand your options and recommend your best course of action. Our goal is to get you the best financing terms possible and get you behind the wheel of a car.

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 Venice.