How does my credit score affect my auto loan?

How does my credit score affect my auto loan?

The process of buying a car can actually be really fun. Deciding between interior features, technology and exterior body styles that match your personality and needs on either new or used cars is exciting—except, of course, if you're credit challenged. Purchasing your favorite vehicle becomes complicated with a low credit score, and since there's several factors that influence your score, it can take time to increase it. But don't be overwhelmed: there are millions of others who are faced with the same challenges.

And, here at Gettel Hyundai Charlotte County, we're on your side. The financial and logistical side of purchasing a car is overwhelming to begin with, especially with a low score. So as you being the financing process with us through our finance application, let's go through some frequently asked questions to learn more about credit scores and what goes into them.

What is a credit score?

A credit score determines your creditworthiness, or how likely you are to repay the loan back to the lender. How high or low those three digits are determines what kind of interest rate you'll receive. Scores above 700 (the range is 300-850) generally mean you'll qualify for lower interest rates. Included in your credit history, your credit score combines factors like credit card debt and late payments on car loans, and considers how long you've had your bank accounts.

What contributes to a less than ideal credit score?

First, just becoming aware of the causes of a less-than-perfect rating will alleviate the frustration and stress of a low credit score. We've weaved through the several factors that affect your credit score and have tailored it down to five points that you might be familiar with:

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Late Payments

A classic way to keep your credit score climbing is to never miss due dates on credit card payments. Late payments over time will decrease your score.

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Missed Payments

You'll be sure to receive a bad credit score by not paying your credit card bills. Missing payments can ultimately lead to a default.

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Defaulting on a Loan

If you have previous loans that defaulted, it will let potential loan agencies or car dealerships know that you're a lending risk since you weren't able to keep up with previously payments.

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Bankruptcy

Bankruptcy is absolutely detrimental to your credit score, so we recommend only filing as a last resort.

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Foreclosure

Foreclosure is similar to the consequences of a loan default since it sends a message to loan agencies that your history of not keeping up with payments will be risky for them to proceed.

How can Gettel Hyundai Charlotte County help?

Here at Gettel Hyundai Charlotte County, we get it. We've built a finance center with empathetic, understanding experts who will work through the logistics in order to recommend the best course of action to take. We will work with you to get the best terms for your financing as possible.

If you have any questions or want to know more, give us a call or stop by our dealership at 1950 Tamiami Trail, Punta Gorda, FL 33950. Gettel Hyundai Charlotte County proudly serves customers from Port Charlotte, North Port, Venice and Fort Myers.

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