Your Auto Financing Questions Answered
Your Auto Financing Questions, Answered | Memphis, TN
Buying a new Toyota or used vehicle is an exciting process, but we know that the financing side can be overwhelming for many of our customers. You may have questions about getting approved, your credit score and more. That’s okay — we get it, and we want to help ease your mind. Financing a vehicle at Chuck Hutton Toyota is easy and straightforward, and when you visit our finance department , our experts will keep you informed throughout each step of the process. Before you stop by our dealership, take a look at our frequently asked finance questions below to see if we’ve answered your questions. If you need more information, don’t hesitate to contact us today.
What is a bad credit score?
Credit scores are characterized in relation to how high or low they are. The range of scores runs from 300 to 850 and is broken down like this1:
The higher your credit score is, the better your options will be (especially in terms of what kind of car you can afford and what APR offers you receive). However, even if you have a credit score between 300-579, you aren’t out of luck. We have worked with customers with low credit scores before, and we’re ready to work with you, too. Our finance experts will customize a financial plan that matches your situation, doing their best to find a loan with reasonable terms that fits your budget.
Will a bad credit score keep me from buying the car I want?
Not necessarily, though a bad score can limit your vehicle options. Improving your credit situation should be your goal, but we’re able to work with a less-than-ideal score in the meantime, helping you get behind the wheel of a trustworthy car while you rebuild your credit. One of the things that boosts your creditworthiness is a steady income. Lenders love to see that you have money coming in regularly (which will allow you to make your payments), and proving your income will increase your chances of approval. Making a down payment and/or trading in your old car will also help lower the cost of your upgrade, meaning you’ll have less to pay off over time.2 If you have a car to trade, find its value on our website.
How can I fix a bad credit score?
Your credit score doesn’t have to stay low forever — there are many ways that you can start repairing your credit today.3 First, check your credit report to see if it contains errors. You can request your TransUnion, Experian and Equifax reports for free at AnnualCreditReport.com. Once you have resolved errors (if any), you should focus on making on-time payments every month while staying below your credit limit. Slowly but surely, this will help raise your credit score.
How much will my monthly payment be?
Once you know your credit score, you’ll have a general idea of the interest rate and term you’ll qualify for. You can then use our payment calculator to enter in these details and a loan amount and estimate your monthly payments. The calculator does the math for you, which makes it easy to see if a car you’re interested in would fit your monthly budget. Once you’re ready to get pre-approved for credit, you can apply on our website.
What if my application gets denied?
Getting denied can be frustrating, but you aren’t out of options. You can co-sign for a car with a trusted friend or family member, which lowers the risk for the lender and makes it easier for you to get approved. Or, if this isn’t an option, you can step back, focus on improving your credit and then try again in the future. While this process takes some time, rebuilding your credit will pay off exponentially down the road. If you have any questions along the way, we’re here to help!
Still have questions we haven't answered? Please don't hesitate to reach out. You can call us at 901-310-2279, drop us a line or stop by our dealership at 4601 Hutton Way, Memphis, TN 38116. We welcome customers from Southaven, Whitehaven and the Goodman Road area.
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