Securing an auto loan | Hopkinsville KY | Serving Fort Campbell, Madisonville, Russellville & Western Kentucky

How does my credit score affect my auto loan?

How does my credit score affect my auto loan?

Buying a car can be a lot of fun. From choosing what type of ride you want to get — sporty, rugged or practical — to choosing the vehicle's color and features, there's a lot to get excited about. However, for those with bad credit, the process is much more complicated than just choosing the right vehicle.

That's why, here at Toyota of Hopkinsville, we make a point to work with those who are credit-challenged. You shouldn't be held back from reliable transportation because of a few financial missteps. Learn more about what leads to a negative credit score, as well as what you can do to help improve it.

What contributes to a less-than-ideal credit score?

Learning about what causes a poor rating can help you avoid the stress and heartache of a low credit score that can take years to correct. There are several factors that go into your score, but here are a few of the big ones that you might be familiar with:

Late Payments

Late Payments
The simplest way to increase your credit score is to keep up with credit card or loan payments. Late payments can add up over time and decrease your score.

Missed Payments

Missed Payments
Not paying your credit card bill is a sure way to earn a bad credit score and can ultimately result in a default.

Defaulting on a Loan

Defaulting on a Loan
This will tell prospective finance companies that you're more of a lending risk for an auto loan since you didn't keep up with past payments.

Bankruptcy

Bankruptcy
Bankruptcy is the most damaging thing that can happen to your credit score and you should only file as a last resort.

Foreclosure

Foreclosure
Similar to a loan default, it sends a message to lenders that you have a history of not keeping up with your payments and that you're a risk.

How can Toyota of Hopkinsville help?

Our friendly and professional finance department is here for you. We'll help determine what your options are and recommend your best course of action. Our goal is to get you the best terms for your financing as possible.

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If you have any questions or want to know more, give us a call or stop by our dealership at 4395 Fort Campbell Blvd., Hopkinsville, KY 42240. Toyota of Hopkinsville proudly serves customers from Fort Campbell, Madisonville, Russellville and Western Kentucky.

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