How does my credit score affect my auto loan? | North Charleston SC | Near Goose Creek, Mount Pleasant & Summerville
How does my credit score affect my auto loan?
Buying a vehicle can be a lot of fun. Whether new or used, it can be an enjoyable experience to go through different tech features, body styles and design. However, it's not always as fun if you have credit problems. Having credit challenges can complicate the process by slowing it down or ending it altogether. A variety of factors can contribute to a poor credit score, and it takes time to rebuild your credit. Take comfort, though, in knowing that millions are faced with the same frustrations.
Luckily for you and others who are credit-challenged, here at Hyundai of North Charleston, we work with a wide variety of credit scores. That's because we understand that you need a car. It can be difficult to navigate loans with a low credit score. Before filling out our finance application, take a look at some helpful information on credit scores and credit challenges.
What is a credit score?
Credit scores span from 300-850. Scores that are above 700 typically are considered “good” and receive lower interest rates. This number is determined on a person's credit history, a report that summarizes payments made or missed on other car loans or credit cards. It also details how long you've had accounts open.
What contributes to a less than ideal credit score?
By just becoming aware of the causes of your low rating can help you ease the headache and stress from a low credit score that might take years of discipline to grow. Your score is influenced by a variety of factors, but we've boiled it down to five big ones that you might have heard of before:
By learning about what causes a low credit rating can help ease the headache and stress. It can also help you rebuild your credit, so take a look at some of the biggest factors:
Late Payments
The easiest discipline to bump up your credit score is to meet payment due dates on your credit card. Over time, late payments will add up and decrease your score.
Missed Payments
Forgetting or refusing to pay credit card bills will definitely deflate your credit score, and can ultimately result in a default.
Defaulting on a Loan
With a default on your credit report, potential finance companies will see that you're more of a lending risk since you weren't able to keep up with previous payments.
Bankruptcy
The most injurious action you can do to your credit score health is to file for bankruptcy. Our finance department suggests only filing as a last resort.
Foreclosure
When your home is foreclosed, it looks similar to a loan default on your credit report. Lenders will see that you have a history of missing payments and that by giving you a loan, they will take a risk.
How can Hyundai of North Charleston help?
The good news is that we're here to help you. We have a knowledgeable and understanding finance department that will work with you. Here at Hyundai of North Charleston, we will shift through all your available options and recommend the best choice for you. We see our goal as to get you 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 8485 Rivers Ave, North Charleston, SC 29406. Hyundai of North Charleston proudly serves customers from Goose Creek, Mount Pleasant and Summerville.