Frequently Asked Financing Questions
How can I guarantee that I will receive a loan?
Whether you seek financing from a bank or dealership, there is no way to guarantee that you will receive a loan. You can increase and positively build your credit score by paying bills on time to prove you are responsible with your credit.
Will a poor credit score affect me forever?
No, a credit score only reflects your current risk at a particular time. As new information is added to your bank and credit bureau files, the report will adjust accordingly. Your score will change based on the way you handle credit. As time passes, credit problems begin to impact your credit report less. A lender will pull a current credit report, so making the effort to improve your current credit score will benefit you when applying for credit. A better credit score will qualify you for better interest rates, and help to save you money.
Will checking my credit report damage my score?
Checking your credit score is considered a “soft pull” or “soft inquiry” meaning it will only be seen on your personal credit report, and will not hurt your score. When you apply for financing on a car, the lender runs a “hard inquiry” on your credit. A hard inquiry can affect your credit scores.
Do lenders use a specific credit reporting agency to check scores?
It is hard to tell which credit reporting agency a lender will use. The three main national credit reporting agencies use the same scoring system, so your scores should be close to the same. The VantageScore scoring system was developed by the three national credit reporting agencies: Experian, Equifax, and TransUnion. This scoring system is a generic scoring system that uses the same formula to collect information from all three agencies.
Does paying cash help my credit score?
No, the only way to build and establish credit is by using it. If you are looking for a loan, you need to show that you are responsibly using your credit. The ideal way to build credit is to make purchases that you can pay in-full each month. Be sure that you are also making payments on time. Over time, this will build up your credit score which will get you ideal interest rates and terms when applying for loans in the future.
Do you have to have a lot of money or a lot of assets in order to have good credit?
No, bank account balances and personal assets do not appear on a credit check. By making payments on time and showing that you using your credit responsibly, your credit score will slowly increase.
Have more questions? Please, contact us.