How Does Credit Impact Car Loans?
How Credit Affects Car Loans in DeLand, FL
Many car shoppers choose to secure a car loan through a dealership for several reasons: convenience, the dealership's relationships with the banks and loan companies or special incentives. At DeLand Kia, it's our dream to help you find the vehicle of your dreams. We have financial experts in our Finance Center who are ready to help you secure financing for your new or used vehicle, regardless of your financial situation. When you're ready to apply for a loan for 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 watch out for the borrower defaulting on the loan. 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
Based on these factors, loan companies will determine how likely you are to repay the loan, and these will greatly impact the interest rates you'll receive from the lender. Those with low credit scores are seen as high-risk borrowers and, if approved, are given higher rates than most applicants.
Qualifying for a Loan
Without a down payment, you may find it difficult to qualify for a loan if you're 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 more confidence that their loan will be repaid on time and in full.
DeLand Kia is Here to Help!
Our team is here to make your car ownership dreams a reality! You can save time before you come into the dealership by utilizing our payment calculator or by filling out our finance application. Or, if you have a vehicle you'd like to trade in, fill out our secure trade-in form to learn how you can save even more.
If you have any further questions or if you'd like to learn more, contact us today or stop by our dealership at 2322 S. Woodland Blvd., DeLand, FL 32720. We look forward to helping our customers near Deltona, Daytona and Orlando.
Warranties include 10-year/100,000-mile powertrain and 5-year/60,000-mile basic. All warranties and roadside assistance are limited. See retailer for warranty details.