How credit ratings affect your ability to buy a car
Samantha R. on 2022-05-27
Credit ratings are often neglected by car owners and new buyers. If you are new to getting a car loan to purchase a car, you are likely to be bombarded with words like credit history, credit ratings, credit score and much more. Although these terms are more or less similar to one another, you need to make sure your familiar with all of them.
What is a credit rating?
In simple words, a numerical representation of your credit history is a credit rating. In most countries credit rating refers to your numerical ability to repay a loan in a specific duration of time. Credit ratings help, in deciding whether you are credit worthy to get a car or not. It’s all about the credit risk for the lender.
Getting a car loan:
Due to the high prices of cars, it is often difficult for buyers to pay a lump sum. Millions of buyers all over turn to lenders to help them buy a car. In such cases, credit score holds a decisive value for the lending of money. Good credit ratings serve you by helping you borrow greater sums of money with lower interest rates. Typically, credit scores falling in 500s are terms as below-prime rates. Prime credit ratings are marked around 700 or more.
Better interest rates:
In today’s tumultuous markets, finding a better interest rate is a tough nut to crack. If you have a poor or non-existent credit score, your chances of getting a loan with low interest rates is very hard. Keep in mind that having no credit is just as bad as a low credit score. One of the best things that can help you access better car loan rates, is to work with us to help you get a car now. We help you establish better credit history by making regular payments. Once your credit rating comes up, you can then quality for a better interest rate and lower your payments.
Credit Rating and trustworthiness:
Let’s address the elephant in the room; lenders are more likely to trust someone with a documented financial history rather than taking your word for it. A credit score is a solid indicator of your financial trail. Lenders are naturally skeptic about your ability to pay the debt, and a good credit score can serve as a way to help build trust, between you, the dealers and the lenders. Work with Simplycars and we will help build your credit score so you can get your dream car. Small positive credit steps will help you get on your way to a healthy credit score.