If you need a car but don’t have the entire asking price available, financing is a great option. This allows you to borrow the money you need to pay for your vehicle. The first step in the Mazda finance process is to get pre-approved for a loan, and one part of this involves lenders looking at your credit score. Here we explain why they do this and the steps to take if your score is on the lower side.
Why Do Lenders Look at Credit?
Banks and other financial institutions want to protect their investment, which is essentially what a loan is. This is why they want to be sure that the person they’re lending money to is worth the risk. A credit score acts like a barometer in this regard. The higher the score (in their eyes), the greater the chance that the money will be paid back.
Can You Get a Loan with a Low Score?
In most instances, even if your score isn’t great, you should be able to secure a loan. However, this will probably result in a higher interest rate. Putting up a larger down payment may help you reduce it.
Are There Other Ways to Lower an Interest Rate?
If you can’t supply a bigger down payment, you may want to consider finding someone to cosign on the loan for you. If this person has a good credit score, this may be able to get you a better interest rate. Improving your credit score ahead of time may also be something to think about.
Start the Financing Process Now
If you want to get the financing process underway, Patrick Mazda makes it simple. Just fill out our online application and someone from our finance department will contact you to go over the next steps.
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