Finance 101 - Part 2: Credit Score | Princeton, WV

Your credit score can play a major role in your ability to get a car loan. Here's what you need to know about how your credit score impacts your financing capabilities - and a few tips on how to give your score a boost.

The Significance of Your Credit Score

In the eyes of lenders, your credit score indicates your reliability as a borrower. If you struggle to make payments on your debts, you'll have a lower credit score - and as a result, you'll have a harder time securing a car loan. In addition to raising the odds of getting accepted for a loan, a credit score over 700 will help you get a better interest rate, saving you money in the long run. However, at Ramey Ford Princeton, we're dedicated to working with our customers, regardless of credit score. We want to help you get the money you need for your next vehicle.

Boosting Your Credit Score

To raise your credit score, be sure that you're making all of your payments on time. This will prove that you're a reliable borrower. On top of that, try to utilize less than one-third of your available credit. Also, avoid closing lines of credit, since this can lower your credit-to-debt ratio. And if you're planning to apply for an auto loan in the near future, avoid applying for other types of loans at least six months in advance, since every loan application puts a dent in your credit score.

You can also sign up for services that help you build credit by monitoring the payments you already make, such as rent and utilities. And to help you keep an eye on your credit score, consider registering for a free credit reporting service.

At Ramey Ford Princeton, when the bank says no, we say yes. Contact our financing department today to take the next step towards your next vehicle.