Credit Report Blog
Website CertifiedPrivacy Protected

Your Credit Score and Getting a New Car

By Ruth Racey
Published: Wednesday, March 17th, 2010

One of the best things in life that you may enjoy is buying a new car. Keep in mind that having a car is almost a necessity, especially when you are in America. Most likely, you will need your car whenever you will shop, go to your workplace and going back home, and even fetching your kinds to school and bringing them back home.

In this case, having a new, shiny, elegant car would surely be a source of pride whenever you are going to hit the road. However, the fact here is that, unless you are an American millionaire, you are very likely to need a high credit score before you are able to dive a new, shiny car. In this case, when you have a low credit score, most likely, you are going to drive an old, dusty one.

Face the truth: most Americans, even relatively rich ones, are able to get and purchase a new, shiny car only through car loans. In this case, remember that it is necessary for you to have a high credit score before you can actually witness your car loan to be approved. Remember that your credit score is actually one of the best indicators of your credit worthiness. Simply out, your credit worthiness is actually your ability to pay for your loans and bills, in the right time and with the appropriate amount. Surely, lenders would like to ensure that whenever you are going to have a car through a car loan, you can in fact pay for your loan.

Remember that having a high score will actually indicate that you are more likely to be able to pay your loan on time. This actually makes you credit worthy enough for them to give you your car loan, enabling you to drive a shiny new car. Take note that before having a high credit score, you must have a good payment history, and have not accumulated your debt. This is where car lenders base from. In addition, having a high score would also enable you to pay for your car loan at much lower interest rates. This will truly make you save a lot of money.

However, when you get bad score, more likely, your car loan will not be approved at all. When it will ever be approved, you are still going to be at loss, for more probably, you have to par for it at high interest rates. This will make you pay more for your car. Therefore, it is better for you to wait to have a high score before you will get your car loan.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.