Does Credit Matter When Applying for Car Financing?

March 9th, 2020 by

If you have your eye on a new car, SUV, or Jeep truck from Zeigler Chrysler Dodge Jeep® RAM in Schaumburg, we’ll be more than happy to help! To get you started, let’s think about a few critical factors when it comes to your credit.

How credit affects car financing

First, let’s talk about your credit character. This refers directly to the way you’ve used credit in the past. A lender will consider the number and types of accounts you have open, whether you’ve made payments on time, and how much debt you’re currently carrying.

If you’re about to apply for an auto loan, now is not the time to make any other large purchases. Put away the credit card and hold off on buying that new TV or opening new, non-essential accounts. If a lender sees that you’ve recently made another big purchase or are frantically opening new credit cards, that can be a red flag that you’re not ready to take on a new monthly payment.

Finally, consider your credit score. This is determined through a combination of the factors above, and generally speaking, a credit score of 700 and above is good and will qualify you for fair market rates. The closer you are to 800 and above, even better, as you’ll likely qualify for the lowest available interest rates, which will save money in the long term.

Get Help from our Schaumburg Zeigler dealership

There are lots to consider when it comes to applying for car financing, so if you have further questions or want to explore your options, don’t hesitate to reach out to the finance team at Zeigler Chrysler Dodge Jeep RAM today. You’ll find an array of new models, including Jeep trucks in Schaumburg.

Posted in Finance