For many drivers, applying for car financing can seem stressful and overwhelming. For starters, you have a lot of terminology to keep in mind, like “credit scores” and their impact on car financing.
Luckily, our experienced finance team at Patriot Auto Group is here to assist you. Visit one of our three locations in the greater Philadelphia area to buy your next great car.
Credit and Financing
The simple answer to this question is yes, but many factors go into calculating your credit score. In addition, a bad or low credit score does not mean you will not be able to secure affordable financing.
Here are the five factors that go into calculating your credit score:
- Credit history. The longer your credit history is, the better your credit score will be if you make your payments on time.
- Payment resume. Making your payments on time is key when you’re looking to secure financing. How long it takes you to make a payment after your due date is also relevant, as is the recency of missed payments.
- Variety of accounts. Having a mixture of accounts (i.e. a credit card, home loan, car loan, college loan, etc.) will raise your credit score.
- Remaining balances. How much money you currently owe on existing loan(s) will factor into your current credit score. Loans that are closer to being paid off will raise your score.
- Current credit activity. Any current loans, credit cards, or applications for financing will impact your credit score to some degree.
Having a good credit score is important when trying to secure car financing. However, even if your credit score is less than ideal, don’t be discouraged. We will still help you find a car loan that works for you.
Stop by Patriot Auto Group to check out our new cars for sale and our current financing offers. We look forward to seeing you soon!