Credit is one of the important factors that go into getting the best car financing arrangements. Many of our car loan customers are aware of the importance of credit and their credit scores, but they are not too certain of what credit exactly is or how it affects them.
Here's a brief overview of credit scores and how they may impact your car financing prospects:
Credit scores are made up of five different categories. Each category carries its own weight and amounts to a different percentage of your overall credit score. Here's what you need to know about these categories:
Length of credit history this category amounts to 15 percent of your entire credit score. The length of your credit history is generally determined by the first account that you opened, such as the first credit card or bank account. It's best to keep long-standing accounts. Therefore, be sure that you do not simply jump from one credit card to another or one bank account to another.
Two Minute Application
Quick, easy and secure credit application. This is the first step in rebuilding your credit and getting the vehicle you want.
Choose Your Vehicle
Loan Doctor has access to thousands of cars, trucks, vans and SUVs across the country. We finance all makes and models!
Congratulations on your new car! Loan Doctor will continue to work on lowering your interest rate even after you drive away.
Payment history your payment history will amount to 35 percent of your credit score making it the most important aspect of your credit score. When going for car financing, it's important to be able to show that you have a history of making payments on time.
Therefore, if you have a bad credit score, try focusing on repairing this aspect of your credit score to get a boost. Also, taking out a car loan that you repay can help to repair this aspect.
So if you are in need of a car loan in the Thunder Bay area please fill out our secure online credit application. One of our credit specialists will contact you promptly and you can be driving away in your new vehicle in as little as one day!