Know What Determines Your Credit Score Before You Finance Your Next Car
If you are trying to finance a new vehicle or plan to finance a vehicle in the near future, it’s vital that you know everything you can about your credit score – which determines whether or not finance companies consider you worth their risk.
But what exactly determines your credit score? Here’s a brief list:
Payment history, referring to how often you pay your bills on time
Amounts owed, referring to how much debt you’ve accumulated
Length of credit history, referring to your oldest credit account, in which more time translates to a better standing
Credit mix, referring to the amount of diversity in your credit (a mix of credit cards, loans, etc.)
New credit, referring to how many credit accounts you have opened – or attempted to open – in the last few years
Keep in mind that some of these factors matter much more than others. For example, it’s more important to make your payments on time than to limit your number of recent inquiries. The best thing you can do to lower your credit score is always meet your minimums, pay off your debts, and spend less.
To learn more or speak with one of our finance experts, visit us or call anytime at Pantili Mitsubishi.