How Does Credit Impact Car Loans?
Many customers choose to secure a car loan through a dealership because of the convenience, the dealership’s relationships with the banks and loan companies plus special incentives offered from manufacturers. At DeLand Kia, we can’t wait to help you find the car of your dreams. Our finance center experts are ready to help you finance your new or used Kia, regardless of your financial situation. When you’re ready to finance your new vehicle, we’ll first take a look at your recent credit activities.
The Importance of Your Credit History
Loan companies place a high level of importance on down payments because they need to look out for themselves, in case of the borrower defaulting. They will examine the following:
- Your amount of debt
- Your payment history
- How long your line of credit has been in use
- Your major debt total
These factors are used to determine the likelihood of you repaying the loan and will greatly impact the interest rates you’ll receive from your lender. Those with low credit scores are seen as high-risk borrowers and, if approved, will be given higher-than-normal rates.
Qualifying for a Loan
It may prove difficult to qualify for auto financing with no down payment if you are credit challenged. Borrowers with credit problems are typically required to make either a cash down payment or an equity trade-in. Up-front payments may influence a lender to approve your application and reduce your monthly payments.
One step you can take to qualify for a loan is to find a co-signer. This gives the dealership, bank or credit union you’ll be financing more confidence that their loan will be repaid on time and in full.
DeLand Kia is here to help!
Our finance team is here to make your car ownership dreams a reality. And you can save time before you come to the dealership by using our payment calculator or by filling out our finance application. Plus, if you have a vehicle you’d like to trade in, fill out our trade-in form to learn how you can save even more!
For more information, give us a call or stop by our dealership at 2322 S. Woodland Blvd, DeLand, FL 32720. DeLand Kia proudly serves customers from Deltona, Daytona and Orlando.