Is My Credit Score a Factor When I Apply for an Auto Loan?

You might be wondering whether your credit score will impact your ability to qualify for an auto loan. The short answer to that question is yes, it will. While your credit history is a determining factor during the financing process, it’s not the only thing our GMC finance department will consider.

Preparing to Apply for Financing

At Neil Huffman Chevrolet GMC of Frankfort, we have the honor of representing several brands. That’s why you’ll see a Chevy Malibu up right next to vehicles like the GMC Sierra 1500 on our lot. Similarly, we have the privilege of helping customers with all sorts of credit scores qualify for financing.

The team at our GMC dealership near Lexington, KY, will tell you that there are some things you can do to increase the odds that you’ll be approved for a car loan no matter what your credit score is. For starters, you can review your credit report and correct any errors or inaccuracies it contains.

The financing experts at our GMC dealership will also advise you to review your debt-to-income ratio. If that ratio is too high, it will negatively affect the chances you’ll secure a loan. It’s a wise idea to pay off some of your debt so that your debt-to-income ratio is more in line with acceptable standards.

As we mentioned earlier, lenders look at more factors than just your credit score when they’re determining your eligibility for a car loan. They also consider how long you’re lived as your current address and the length of time you’ve been with your employer. To increase the chances, you’ll qualify for a loan, make sure you have proof of your employment, your current address, and how long you’ve been at each.

Putting a down payment on a vehicle shows a lender that you’re a serious buyer who intends to pay off your debt. The more you put down, the more you’ll demonstrate that you’re a responsible buyer who deserves to be approved for a loan. To see how a down payment will impact your loan, use our payment calculator.

Take Advantage of GMC Offers and Incentives

While it won’t help you qualify for a loan, looking through our GMC offers and incentives can help lower the overall cost of a vehicle. To see if you’re eligible for any of our promotions, contact our GMC finance department.

Are you ready to apply for a car loan? Visit Neil Huffman Chevrolet GMC of Frankfort today.