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Car Finance Myths That Aren't True In Mount Hope

Car Finance Myths That Aren't True In Mount Hope

The more complicated a subject is, the more prone to misunderstanding it is. As there are few more complicated subjects than finance, it’s an area rife with myths and misunderstandings. Some of which our Mount Hope car finance team are going to crush today.


Myths interfere with informed decisions so it’s in everyone’s interest to bust as many myths as possible. That’s what we’re going to do today.


Here are some common car finance myths and we’re going to bust them.


Checking your credit report often will lower your score


Not true. Simply checking your credit report or credit score will have zero impact on it. You can check it twice a year for free and it will have no impact whatsoever.


Your credit score will only be impacted when a lender performs a hard inquiry as part of a loan application. That’s the only time a simple check will impact you.


The more you earn the higher your credit score


Not true. Income only has a bearing when considering debt to income. It does not impact your score in any other way. Your credit score is a measure of how you handle debt, not how much you earn.


Income has a bearing when considering an auto loan application but other than that, it has zero impact.


Keeping a balance on a credit card improves your score


Not true. There is a measure called credit mix that assesses the different types of credit you have but carrying a balance on a credit card will not improve your score.


Depending on how much balance you carry, it could negatively impact your chances of getting a loan but not usually the score itself. Debt to income is used to measure affordability so if you carry a high balance on a credit card, it can negatively impact the affordability check.


If my significant other goes bankrupt, it impacts my credit score


Not true. Credit reports are individual and will not be impacted by a partner or significant other. They are an individual record of how you as an individual handle debt.


A partner going bankrupt may impact your ability to borrow as a couple but it will not impact your personal score.


Once you have bad credit you’ll always have bad credit


Not true. Your credit score is fluid and will change as your behaviour or circumstances change. Handle debt well after whatever sent you into bad credit ands your score will recover.


Do nothing about it and continue to miss payments and your credit score will either stay the same or get worse.


Just because you have bad credit now, it doesn’t mean it has to stay that way. Work hard, pay off debt and don’t miss payments and your score will improve steadily over time.


Bad credit means I can’t get a car loan


Not true. Bad credit car loans are called that for a reason. They are a viable, legitimate way for people with bad credit to afford new cars. They may be more expensive than standard loans but they are accessible to almost anyone who can prove they can afford repayments.


Bad credit does not mean you cannot get a car loan in Mount Hope!


When you’re ready for a car loan, get in touch with the Vineland auto loan experts at Northway Ford for great deals on auto finance.


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