Keeping an Eye On Your Credit Score Can Save You Thousands
How Does Your Credit Score Impact Car Financing?
Buying a vehicle will likely require a deep look at your personal finances. A major portion of that examination will be taking a look at your personal credit report and taking a look at your credit score. So, how does your credit score impact car financing? In short, having the highest credit score possible could mean saving thousands of dollars over the life of your auto loan. Conversely, people with a less-than-perfect credit score could end up paying thousands more in higher interest costs. Let’s take a look at some information that could be very beneficial to future Davey Auto Sales customers.
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How Are Credit Scores Determined?
Your credit score is the sum total of your payment history, loan payments, credit card debt and other factors that are weighted in different ways to produce a three-digit score. In Canada, credit reporting agencies like Equifax and TransUnion have a score range of 300 to 900. A broad generalization for credit scores include:
- 300-599 – Credit needs some work
- 740-799 – Credit considered very good
- 800-900 – Excellent credit
Paying off outstanding debt and clearing up any accounts that are in collections will go a long way to raising your credit score.
What Does Bankruptcy Do to Your Credit Score?
Tough times come for all of us at some point. When these problems are financial in nature, it can take a long time to right the ship. Bankruptcy is a tool that helps people start the process of getting people out of crushing debt. However, just because someone is having a tough time financially, it doesn’t mean they don’t need safe, reliable and affordable transportation.
While bankruptcy will lower a person’s credit score, getting a loan for a car isn’t impossible. In fact, getting a new loan after bankruptcy can actually help restore a person’s credit profile if all the payments are made on time.
The Davey Auto Sales team has decades of experience helping people in all kinds of credit situations find affordable financing options. Make an appointment with us today.