The car-buying process can be stressful, especially for first timers. There is no denying the process of applying for and securing a loan is complicated, but we’re here to help demystify it. Your credit provides lenders with necessary background information regarding your Lincoln finance situation.
Let’s take a look at some of the ways your credit score is vital to the car-buying process.
What is Credit?
Credit is a measure of someone’s ability to borrow and repay money properly. Credit is measured via a score you receive from the credit bureau based on your financial past.
Your score gives future lenders an idea of your financial state and can allow them to provide loans customized to your situation.
How Does My Credit Affect My Ability to Get a Loan?
When you apply for financing on items such as a car, your loan provider will take a look at your credit score and history before offering you a loan.
Loan providers will custom write a loan that includes a down payment, interest rate, and monthly payment based on your history and score. This is why your credit score matters when applying for Lincoln financing!
What Can I Do to Raise My Credit Score?
A higher credit score means a better loan for you, so what can you do to raise your score? Make sure to look at your credit reports from the big three credit bureaus (Equifax, Experian, and TransUnion) and take a note of what’s hurting you most.
Be sure you’re at least making minimum payments on your bills in a timely manner and aim to utilize less than 30% of your total credit per billing cycle.
Hopefully, this guide has demystified the credit process a little for you. We understand that the finances surrounding the car-buying process are confusing, but we aim to help our customers via education! Any of your remaining questions should be directed towards the Woodhouse Lincoln finance department.
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