How does my credit score affect my auto loan?
How does my credit score affect my auto loan?
The car-buying experience can be a lot of fun. From choosing what type of ride you want to get — sporty, rugged or practical — to choosing the vehicle's color and features, there's a lot to get excited about. However, for those with bad credit, the process is suddenly much more complicated than just choosing the right vehicle.
That's why, here at Chuck Hutton Toyota, we make a point to work with those who are credit challenged. You shouldn't be held back from reliable transportation because of a few financial missteps. Learn more about what leads to a negative credit score below, as well as what you can do to help remedy it.
What contributes to a less than ideal credit score?
Finding out what causes a poor rating can help you avoid the stress and heartache of a low credit score that can take years to correct. There are several factors that go into your score, but here are a few of the big ones that you might be familiar with:
Late Payments
The simplest way to increase your credit score is to keep up with credit card or loan payments. Late payments can add up over time and decrease your score.
Missed Payments
Not paying your credit card bill is a sure way to earn a bad credit score and can ultimately result in a default.
Defaulting on a Loan
This will tell prospective finance companies that you're more of a lending risk for an auto loan since you didn't keep up with past payments.
Bankruptcy
Bankruptcy is the most damaging thing that can happen to your credit score and you should only file as a last resort.
Foreclosure
Similar to a loan default, it sends a message to lenders that you have a history of not keeping up with your payments and that you're a risk.
How can Chuck Hutton Toyota help?
Our personable and professional finance department is here for you. We'll help determine what your options are and recommend your best course of action. Our goal is 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 4601 Hutton Way, Memphis, TN 38116. Chuck Hutton Toyota proudly serves customers from Southaven, Whitehaven and the Goodman Road Area.