Are you caught in a credit problem? You can't get any loans unless you have a good credit score. But you can't get a good credit score without a loan. At Glockner Family of Dealerships, we offer tailored solutions to help ease the hassle of securing an auto loan, even if you have bad credit. Let's dive into the world of credit acceptance and bad credit car loans to light the way for smooth vehicle financing.
What Is a Credit Score?
Your credit score, or FICO score, is any number between 300-850 that shows your credit health based on information from your credit reports, providing insight into your financial responsibility. Banks, car dealers, credit card companies, and other lenders use your score to determine whether to lend you money.
- Scores below 580 are considered poor and make it harder for credit acceptance.
- Scores between 670-739 are considered good. According to Experian, the average credit score in 2020 was 711.
- Scores of 800 or higher are considered excellent and can get you the best rates and terms for financing.
Where to Check Your Credit Score
By law, you can get a free credit report once a year from each of the major credit bureaus: Equifax, Experian, and TransUnion. As each report is slightly different, we recommend obtaining all of them for a complete understanding of your credit.
One way to get your report is to contact each company individually. Or you can go to AnnualCreditReport.com, and after verifying your identity, you can view your report from specific companies.
How an Auto Loan Affects Your Credit Report
When you get a new car loan or refinance an existing one, your credit report shows a hard inquiry that temporarily lowers your score. However, the loan also adds to your credit mix in the form of an installment account. These accounts are favorable for improving your credit report.
What Are the Factors of a Credit Score
FICO looks at five factors when determining your credit score:
How an Auto Loan Can Improve Your Credit Score
The best way to improve your credit score using an auto loan is to make sure you pay on time. A loan account that appears as "current" on your report will improve your score.
If you fail to make your loan payments and are 30 days or more behind, it may result in the repossession of your car. These acts will have terrible effects that will destroy your credit and leave impacts on your credit report for up to seven years.
Getting Started with Your Credit Score
Regardless of your credit situation, Glockner Family of Dealerships aims for 100% auto loan approval. Whether you have no credit, good credit, or anything in between, we want to find you the perfect vehicle while building a long-term relationship.
At Glockner Family of Dealerships, we can solve most credit problems to ensure fast and easy credit acceptance for a fair interest rate. To get started, fill out our online application. Next, you'll see your pre-approval amount, and we'll offer you an installment plan within your budget. Also, you can lower your monthly payments by providing a down payment or trade-in.
Any questions? Please call us or contact us through our chat box.