How does my credit score affect my auto loan?

How does my credit score affect my auto loan?

Purchasing a vehicle, especially for the first time, is a lot of fun. Deciding on new or used, the body style, tech features or interior trims that best fit your needs or personality make an exciting buying experience⁠—but not if you're credit challenged. Buying becomes more complicated with a low credit score. A variety of factors influence a poor credit score, and even with good financial disciplines, it will take time to restore. Millions of others are facing the same hindrances that you are.

But don't worry. Here at Gettel Hyundai of Lakewood, we can work with a spectrum of credit scores. We understand that you need a vehicle and how difficult it is to have credit challenge. So as we start the financing process with a credit application, here's more information about what factors makes a credit score good or bad, and what Gettel Hyundai of Lakewood can do to help.

What is a credit score?

What kind of interest rate loan companies or local dealerships give is dictated on those three digits on your credit report. But what qualifies as a good credit score? The range of scores is between 300-850, and scores above 700 generally mean you can qualify for those optimal lower interest rates. Those three digits are calculated based on your credit history, which takes into account matters like credit cards and late payments on other car loans, as well as how long you've had those financial accounts.

What contributes to a less-than-ideal credit score?

Just educating yourself on the reasons for a less-than-ideal rating can ease the stress and headache of a low credit score that might stretch out to years of correction. There are several reasons that go into your score, but we've tailored it down to five big ones that you might already be acquainted with:

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Late Payments

The best way, and simplest way, to increase your credit score is to meet due dates for credit card payments. Over time, late payments can add up and subtract from your score.

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Missed Payments

Missing your credit card bills entirely will definitely contribute to a bad credit score, and will ultimately, if not fixed, result in a default.

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Defaulting on a Loan

Defaulting will let potential loan companies know that you're more of a lending risk for an auto loan since you weren't able to keep up with previous payments.

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The most detrimental action you can do to your credit score is to file for bankruptcy. We recommend only doing this as a last resort.

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Foreclosing on a mortgage is similar to a loan default—it lets lenders know that you have a history of not keeping up with payments and by approving you for a loan, it will be a risk.

How can Gettel Hyundai of Lakewood help?

We're here for you. Staffed with an expert and empathetic finance department, we can navigate your options with you and advise on next steps for an auto loan. Our mission is to give you the best terms for financing as possible.

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.