When you get ready to go to your New Jersey auto dealers, you need to be ready to get the best auto financing you can possibly get. To do that, you need to be very familiar with your credit score.
As we talked about last time, there are several things that make up your credit score. Here are those criteria, explained in more depth:
- Payment history. About a third of your score is based on your payment history. This has to do with how timely payments have been, how much you owe, whether you’ve had late payements and how recently you’ve had late payments.
- Outstanding balances. Another third or so of your credit score is based on your balances. This has to do with whether you’re at or near the limit on your credit accounts.
- Credit history. If you’re just starting to build a credit history, you’ll have a lower score than someone who has a long credit history.
- New credit. How much of your credit is new will affect your credit score, as well.
- Type of credit. You want to have a good balance of loans, mortgages, retail accounts and credit card accounts.
Knowledge is power. Know your credit score, and do what you can to improve it before you apply for auto financing.
Your credit score is an important part of figuring out what kind of auto financing loan you’ll be able to get. Understanding what the credit score means is the first step in trying to improve your credit score so that you can get the best possible auto financing credit options available.
