How Does Credit Impact Car Loans? | Bradenton FL

How Credit Impacts Car Loans in Bradenton, FL

There's a reason that people turn to local dealerships when they need a car loan. This is largely because of the many things that they can offer such as convenience, relationship to banks and loan companies, and special incentives/finance programs provided by manufacturers. Here at Gettel Hyundai of Lakewood, our finance department is open to offering car financing to people with credit issues and limited money down.

One of the most important things that we look at when it comes to financing an automobile, and something you need to keep in mind before applying, is your recent credit activities. Your credit report is a summary of your credit history and certain other information.

The Importance of Your Credit History

Wondering why loan companies place such a high level of importance on down payments? They're just protecting themselves, in the case of the borrower defaulting. This can be extra important if your credit report shows examples of:

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

These are all factors that are considered to assess the certainty of you repaying the loan. It also has a large impact on the interest rates you'll receive from your lender. People who have lower credit scores are often looked at as high-risk borrowers and, if approved, will have higher than normal rates.

Qualifying for a Loan

It's also much more difficult to qualify for auto financing with no down payment if you have been credit challenged. For borrowers with credit problems who need a vehicle, it is usually a requirement that they have either a cash down payment or an equity trade-in. These forms of up-front payments can help influence a lender to approve your application, while also lowering your monthly payments.

Another way to qualify for a loan if you have less-than-ideal credit is to find a co-signer. Finding someone to cosign for your loan is a great way to qualify for a loan. It gives the dealership, bank or credit union you'll be financing with more confidence that their loan will be repaid on time and in full.

Gettel Hyundai of Lakewood is here to help!

We want you to drive home happy in your next vehicle, and our finance team is here to help! Simply fill out our finance application to get started. We look forward to working with you to get behind the wheel of a vehicle soon!

If you have any questions or want to know more, give us a call or stop by our dealership at 5921 FL-64, Bradenton, FL 34208. Gettel Hyundai of Lakewood proudly serves customers from St. Petersburg and Brandon.