Don't Let A Low Credit Score Bring You Down!
Finances should never come between you and the car of your dreams. Period.
That said, finances do a play a large role in your ability to buy a new or pre-owned vehicle. Buying a car or a truck is a big investment, and you need to make sure you're in good position financially to make such a move. If you're thinking about purchasing a new or used vehicle in the near future, chances are you'll want to take out an auto loan so you can spread your payments out over the course of a few years.
Securing a low interest rate is a crucial step towards getting a good auto loan, and your credit score has a huge impact on the interest rate you'll be able to receive. No matter when you're planning on buying your next car, it's never too soon to start boosting your credit score! Familiarize yourself with the factors that influence your credit score so you can use them to your advantage.
Payment History
This is biggest and most important factor that can influence your credit score. Your score will reflect how many bills you pay in full every month. Consistently making good payments will help increase your score, whereas making late payments can severely hurt your score.
Public Records
Beware of bankruptcies, judgments, foreclosures, collection items, and the like. These factors can drag your score down very quickly if you aren't careful.
Amount Owed
The less debt you have, the better - to an extent. Owing some money is good, because it gives you a chance to prove your reliability by paying your bills in full each month. However, owing a lot (e.g., continually maxing out your credit line) makes you seem financially irresponsible and can lower your score.
Length of Credit History
Generally speaking, the farther back your credit score reaches, the better off you'll be. For example, you may have a high credit score, but if your credit history only goes back for one year, your lender may decide it's not long enough to prove your reliability.
New Credit Accounts
Accruing multiple credit accounts isn't a bad thing, unless you apply for several new accounts at one time. Opening multiple accounts at once sends flags that you may be struggling with cash flow or planning on taking on lots of new debt in the near future. If you're looking to expand your credit card arsenal, space out your applications over several months.
Credit Inquiries
Every time anyone - lender, insurer, landlord, etc - receives a copy of your credit score, an inquiry is reported on your credit history. If several different individuals request access to your credit score within a brief amount of time, it can negatively impact your score.
Types of Debt
Believe it or not, having multiple types of debt can actually be a good thing. Your credit score can raise over time if you prove yourself financially responsible by successfully managing multiple bills (such as your car loan, home loan, and your phone bill) and paying them in full every month.
Each of these factors can have an impact on your credit score. Whether that impact is positive or negative, though, is entirely up to you and how you choose to manage your finances. The team at Hulett Chevrolet Buick GMC is here to remind you to be careful with your credit score - you'll want it to be as high as possible when you decide to purchase your dream car at the Lake of the Ozarks!
We look forward to the opportunity to meet you and help you find the vehicle that is just right for you! We have a large inventory of new and pre-owned vehicles
The Team at Hulett Chevrolet Buick GMC
513 N. Business Route 5
Camdenton, MO 65020
www.ShopHulett.com
Sales: 573.317.4197
Service: 573.317.4195
That said, finances do a play a large role in your ability to buy a new or pre-owned vehicle. Buying a car or a truck is a big investment, and you need to make sure you're in good position financially to make such a move. If you're thinking about purchasing a new or used vehicle in the near future, chances are you'll want to take out an auto loan so you can spread your payments out over the course of a few years.
Securing a low interest rate is a crucial step towards getting a good auto loan, and your credit score has a huge impact on the interest rate you'll be able to receive. No matter when you're planning on buying your next car, it's never too soon to start boosting your credit score! Familiarize yourself with the factors that influence your credit score so you can use them to your advantage.
This is biggest and most important factor that can influence your credit score. Your score will reflect how many bills you pay in full every month. Consistently making good payments will help increase your score, whereas making late payments can severely hurt your score.
Public Records
Beware of bankruptcies, judgments, foreclosures, collection items, and the like. These factors can drag your score down very quickly if you aren't careful.
Amount Owed
The less debt you have, the better - to an extent. Owing some money is good, because it gives you a chance to prove your reliability by paying your bills in full each month. However, owing a lot (e.g., continually maxing out your credit line) makes you seem financially irresponsible and can lower your score.
Length of Credit History
Generally speaking, the farther back your credit score reaches, the better off you'll be. For example, you may have a high credit score, but if your credit history only goes back for one year, your lender may decide it's not long enough to prove your reliability.
Accruing multiple credit accounts isn't a bad thing, unless you apply for several new accounts at one time. Opening multiple accounts at once sends flags that you may be struggling with cash flow or planning on taking on lots of new debt in the near future. If you're looking to expand your credit card arsenal, space out your applications over several months.
Credit Inquiries
Every time anyone - lender, insurer, landlord, etc - receives a copy of your credit score, an inquiry is reported on your credit history. If several different individuals request access to your credit score within a brief amount of time, it can negatively impact your score.
Types of Debt
Believe it or not, having multiple types of debt can actually be a good thing. Your credit score can raise over time if you prove yourself financially responsible by successfully managing multiple bills (such as your car loan, home loan, and your phone bill) and paying them in full every month.
Each of these factors can have an impact on your credit score. Whether that impact is positive or negative, though, is entirely up to you and how you choose to manage your finances. The team at Hulett Chevrolet Buick GMC is here to remind you to be careful with your credit score - you'll want it to be as high as possible when you decide to purchase your dream car at the Lake of the Ozarks!
We look forward to the opportunity to meet you and help you find the vehicle that is just right for you! We have a large inventory of new and pre-owned vehicles
The Team at Hulett Chevrolet Buick GMC513 N. Business Route 5
Camdenton, MO 65020
www.ShopHulett.com
Sales: 573.317.4197
Service: 573.317.4195
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