If you’re in the market for a new car, you’ve probably come across the term “credit score.” If you’re like many car shoppers, you might be foggy on what constitutes a good score and how to improve your current credit score. Here are some basic facts about credit scores, so you can be more informed when financing your next ride with a dealership.
What is a credit score?
Simply put, a credit score is a number used by lending institutions to determine the amount of risk they are taking on by issuing a specific loan. The higher the credit score in question, the more confident the lending institution will be when reviewing your loan application.
Credit scores and auto loans
When applying for financing for your car purchase, your credit score will be one factor that determines the specific terms of the loan. Typically, when you have a higher credit score, you will end up with lower monthly payments and less interest on a loan. This translates to substantial savings in the long run.
How to improve credit score
If you have little credit history or a low credit score, there are ways to improve your credit. Paying off existing debt and staying on top of regular payments are two primary ways to start significantly improving your credit score.
The bottom line
At Tropical Ford, we’ll work with you to find a financing solution that works for you. Even if you have little credit history or bad credit, our expert financial team wants to help you get behind the wheel of your dream car.
If you have any more questions about credits scores, or want more information about financing a vehicle with Tropical Ford, give us a call. We can also set you up with a test drive of your favorite Ford model.