When you are looking to secure a car loan, the better your credit score is, the easier it will be, most of the time. It’s something that most know and keep in mind when shopping for a vehicle. That being said, all of the work that goes into a loan; from credit check software to contacting a dealership’s financing department can get rather confusing. CarEdge demystifies the relationship between credit scores and car loans in its comprehensive video.
What Impacts Someone’s Ability to Purchase a Car With Credit?
Most people assume that a high credit score will secure better loan terms and this is often true, however, it can vary. Those with limited auto history can still be granted loans with unwanted terms, due to their lack of specific credit history that auto loan issuers look for. Building credit is good, but making sure that credit history displays an ability to manage certain types of credit, like auto loans, can make all the difference. The key to getting the best possible rates is to make a downpayment, have a high credit score, and have a credit history that matches the loan type you are going for.
Credit scores can be confusing. This is even more true when it comes to the complexities of leveraging credit to get an auto loan. While a good credit score can help, it’s not all you must have when getting an auto loan. Knowing this, you can better prepare yourself for the car-buying process.
