HOW DOES MY CREDIT SCORE AFFECT MY AUTO LOAN?

How does my credit score affect my auto loan?

How does my credit score affect my auto loan?

Purchasing that first car is pretty exciting! You can pick the body style of the new vehicle, technology features you'd like to include and even what interior trims would suit your personality best. It can be a thrilling experience, unless, of course, you're credit challenged. Buying that new or used car becomes more challenging with a low credit score. But we understand—there are several factors that contribute to a low score, and it can take years to rebuild. There are millions who are struggling with the same frustrations as you, too.

And lucky for you, we've worked with a spectrum of credit scores here at Gettel Lincoln, so there's nothing to be embarrassed about. Our staff knows how difficult it can be to navigate large purchases with a less-than-perfect credit score, especially when the purchase is as necessary as a vehicle. So before you take a look at our easy-to-use finance application, why not read about what makes a low credit score and learn how to avoid decreasing it.

What is a credit score?

Your credit report will have two important factors that lenders will check: your credit score—which is the three digit number that totals how likely you are to repay debt—and your credit history. Credit scores range from 300-850 and those with scores above 700 will typically qualify for lower interest rates. Your credit history determines your credit score, too, and includes components like credit cards or other car loans with late payments and how long you've held your financial accounts.

What contributes to a less than ideal credit score?

KFiguring out the reasons behind a poor credit score alone will ease the discomfort and stress of a low rating, especially when it can take time to raise. We've shifted through all of the several factors that go into the making of your score, but we narrowed it down to five that you might be familiar with:

Late Payments
Late Payments

Those pesky late payments on any credit accounts are a simple avenue to decreasing your score. Late payments add up over time on your credit report and negatively affect your credit.

Missed Payments
Missed Payments

Missing payments entirely will definitely lower your score, and fast. They can result in a default on the loan, too.

Defaulting on a Loan
Defaulting on a Loan

Shown on your credit report, defaulting on a loan will let potential lenders know that you're a risk to approve for another loan since you weren't able to continue your payments.

Bankruptcy
Bankruptcy

The worst thing you can do for your credit score is file for bankruptcy. Our financial team recommends only filing as a last resort.

Foreclosure
Foreclosure

Foreclosure on a home looks similar to a loan default on a credit report—it sends the same message that you have a history of not making payments.

How can Gettel Lincoln help?

But don't worry. Here at Gettel Lincoln, we have a finance department staffed with empathetic, friendly experts who've seen customers with a variety of credit scores get their vehicle of choice. We see it as our mission to give you the best terms for your auto financing as possible.

If you have any questions or want to know more, give us a call or stop by our dealership at 2021 Tamiami Trail, Punta Gorda, FL 33950. Gettel Lincoln proudly serves customers from Port Charlotte, North Port, Venice and Fort Myers.