Credit Scores and Car Buying Q and A

Your credit score is essential when leasing a car, because it’s essentially a number used to determine how likely you are to repay a loan on time. Usually, a higher credit score puts you in a more eligible position to receive a loan because it shows you have a history of paying back your loans on time. A lower score may alter the dealer’s decision to loan because a low credit score can indicate you have had trouble paying back loans on time in the past. If you find yourself with a not-so-great credit score, don’t worry! There are plenty of ways to regain your credit and get your credit score back on track. Here at Pinckney Chrysler Dodge Jeep RAM, we can help you develop better habits to improve your credit score and receive the lease you’ve been hoping for.

There are plenty of ways to rebuild your credit score and build it up over time to have a better chance of getting approved! One of the best ways to rebuild your credit over time is to pay down credit card balances, as paying off revolving debt has one of the fastest impacts on your score. You can also pay back all loans on time, and if you have trouble remembering due dates, set up auto-pay or a calendar to remind you when to pay utilities, loans, and credit cards. One missed payment can hurt, but if you are consistent over time and pay back loans on time, you’ll see an increase in your credit score. Be sure also to space out applications and avoid unnecessary credit checks while rebuilding, as each new application for credit can cause a slight score dip over time. There are plenty of ways to rebuild credit, and having patience and consistence is the best way to go.

Your credit is vital when buying a car because it determines whether you’re approved, how much you can borrow, and how much you’ll pay overall. A dealer may check your credit score to determine how risky it is to lend to you, as they don’t want to lease a vehicle to someone who can’t pay back loans or monthly payments. Your credit score can also impact your interest rate: a higher credit score results in a lower rate, and a lower credit score results in a higher rate. Your credit can also affect down payment requirements: a strong credit score often allows you to put less money down, while a weak credit score may require a larger down payment to reduce risk. Overall, your credit tells lenders how trustworthy you are with borrowed money, and with a better credit score, you’ll have more options when leasing a new vehicle.

Here at Pinckney Chrysler Dodge Jeep RAM, our finance center is here to help you find the perfect plan and offer resources to everyone, from every walk of life. We understand how frustrating it can be to rebuild your credit, and our team is here to provide personalized solutions that help you regain your credit and lease the car you want. Our finance center also offers fast approvals, so you know right away if you’re approved and can drive off our lot in your vehicle of choice sooner! We also believe in transparency and clear, open communication. If your application is rejected, we communicate exactly why and offer solutions to help you get accepted the next time around. We’re here to help here at Pinckney Chrysler Dodge Jeep RAM!