Unless you’re sitting on a pile of cash, more than likely you’ll need help financing a car. This is where your credit score comes into play. Many people have credit scores that are less than desirable, and this will sometimes dissuade people from pursuing a new car. But, it doesn’t have to be that way. You can get a new car with a low credit score, and there are dealerships all over the place that are willing to work with you to do just that.
Fortunately for drivers in Brockton, Randolph and Stoughton, MA, Nissan 24 is one such place. Learn more about what exactly a credit score is, how it can affect your car buying process, and how the friendly associates at Nissan 24 can help.
What’s a Credit Score?
Your credit score is a three-digit number affixed to your financial history. It reflects everything from your credit cards, loan repayments, rent/mortgage payments, student loans, etc. When you’ve been good about making prompt payments and keeping your payments low, your credit score will be higher. As there are several different credit rating services, each with their own ratings system, there is no set scale. However, the ratings are similar enough in scale that you can gauge where a good credit score generally falls.
What’s a Good Score to Get a Car?
Obviously, the higher your credit score, the best deal you’ll get on financing. When you finance a car, you’ll get an interest rate assigned to your payment plan. This interest rate will reflect good credit scores by giving a lower interest rate, usually less than 10 percent. The worse your credit score is, the higher your interest rate will be. When trying to determine where the “danger zone” is in financing a car, a credit rating of 500 and below is where you’ll start to see your interest rate rise.
What if My Credit Score is Really Bad?
Even with credit scores under 500, it’s possible to still get a new car. However, interest rates at this level could reach as high as 25 percent. These lenders consider lower credit scores as “high risk” and will, in turn, charge higher interest rates. Nevertheless, it’s still possible to get that new car you need, even with a bad credit score. Additionally, by making regular, prompt payments, it’s possible to improve your credit score, even after you’ve been assigned a higher interest rate.
What Can Nissan 24 Do to Help Me?
There are more financing options today than ever before. At Nissan 24, we’ve implemented online technology so that you can submit an online financing application before you ever set foot on our lot. Our finance team is here to get you in the Nissan of your dreams, so start financing with us today! We look forward to working with you.