Financing a car in Hagersville to improve your Credit Score

Financing a car in Hagersville to improve your Credit Score

Posted on August 2, 2022

When you live in Hagersville, having a vehicle to get around is essential.  It’s not always possible to just walk into a showroom and purchase a brand-new car though, so what can you do if that’s not an option for you?

The first thing you need to do before making a big purchase, like a car, is to check your credit score.  It might be a little intimidating to think about, but you should go into any large transaction armed with all the information at your disposal.

Your credit score will fall somewhere on a scale between 300 and 900.  A good score would be over 660.  When you’re over this number you can walk into just about any financial institution and get approval on a loan.  A high score shows creditors that you can handle your debts responsibly and they can count on you to repay any loans you’ve been given.

So, what do you do if you don’t land above that number?  You do still have options, just perhaps not as many as someone in the above scenario.  There are dealers who specialize in providing car loans to people with subprime credit.  When you qualify for one of these loans, you must be prepared to pay a little more in interest than a traditional bank loan.  This is to reduce the risk the lender takes on by trusting someone with less than stellar credit.

When you keep making your payments on time every month, you’re actually improving your credit score!  Payment history is a major factor in determining your score, so the best thing you can do is make your payments in full and on time each month.  When you’ve paid off this car loan, you’ll qualify for one with less interest on your next car.

Buying a car is an exciting time, and it doesn’t have to be stressful.  At Northway Ford we want to help you get into the perfect vehicle, so get pre-approved online and start shopping on our site today!

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