Purchasing a new vehicle can be overwhelming, and the process becomes even more daunting if you don't have the best credit score.
Here at Patrick Mazda, we understand that life happens. If you're in need of a new vehicle, you can rest assured that there are Mazda finance options available for you, even if you have bad credit.
How Does Credit Impact Financing?
There are a number of factors that can affect your ability to secure auto financing. Credit is just one of those factors; lenders also look at your income, debt-to-income ratio, and more.
The reason your credit score matters is because it largely affects your interest rate. The higher your credit score is, the lower the interest rate will be. Typically, buyers with lower credit scores will have higher monthly payments.
What Credit Score Do I Need?
There isn’t really a hard and fast rule for the type of credit score you'll need. Usually, lenders won't feel comfortable giving you a loan if your score is 660 or below.
However, there are still options for buyers with lower scores. Also, there are additional steps you can take to get approved if you are having trouble doing so.
Other Ways to Get Approved
Before shopping for a car, it’s a good idea to get a free credit report. After all, there may be issues with your report or simple steps you can take to raise your score.
When time is an issue, you might also want to consider enlisting a co-signer. Adding a co-signer with a better credit score can certainly help your chances of getting approved.
Keep in mind, price plays a big role in approval as well. Making a larger down payment or shopping for a more affordable vehicle can also help your approval chances and, of course, result in a lower monthly payment.
Have more questions? Our financial experts at our Mazda dealership in Auburn, MA are happy to help. Reach out today!
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