|HOW MUCH DOES CREDIT SCORE MATTER?|
|Posted on: Nov. 05, 2016 in Car Loans, Credit, Credit Score|
In order to make a large purchase, such as buying a car, you will most likely have to borrow money. How much you can borrow, how you borrow, and the terms of the loan will all be decided based on multiple factors. For example, lenders may take into consideration your credit score, your income, your work history and whether or not anyone is cosigning the loan with you.
Your credit score can have a major impact on your ability to borrow money. Most scores, including the often-used FICO score, have a tiered rating system. Here are the typical ranges:
Loan terms will often be better if your credit score is higher. But more than that, the higher your score, the more likely a lender will be to lend you money. If your score is high in the areas that have to do with loan repayment (your payment history), a lender will feel more confident that you’ll pay back this loan timely as well.
However, if your score is low, a lender may have concerns about loaning you money. Whether your score is low because of a lack of history or because of some missed payments in your past, a lender may feel you pose a higher risk and that you may not pay back this loan. Also, if you have a high debt-to-income ratio or you’re nearly maxed out on your credit already, it could appear you’re already stretched too thin.
Having a low credit score does not mean you’re automatically ineligible for a car loan, nor does it mean you’re doomed to bad loan terms. At CreditYes, we say “yes” at the lowest possible interest rate. We also offer a fast, simple loan process to make things easier on car buyers. By looking at your stability - monthly income and work history - we’re able to go beyond just the credit score.
If you need auto financing but your credit is keeping you from getting approved, CreditYes can help! We can match you with a dealership in your area that will be with you every step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!