Hyundai Finance Tips: How to Raise Your Credit Score

When you’re starting to look into Hyundai finance options for buying or leasing a vehicle, one of the biggest variables in the equation is your credit score. But why does your credit score matter, and how can you raise it if it’s not up to par?

What is a Good Credit Score?

Your credit score is a three-digit number that lenders reference to gauge how much of a loan risk you are. The lower the number, the higher the risk, so the more likely that lenders would not want to offer you a loan.

This score is determined by several factors, such as the punctuality of your repayments, the size of your outstanding debts, or the number of accounts you have open. A “Good” credit score typically falls between 670 and 739 – you want to aim for that 670 benchmark if you’re looking to get a new car loan.

How Does My Credit Score Affect My Car Loan?

Lenders have much greater confidence in loanees who have higher credit scores and will offer them better rates as such. This means that borrowers with high credit scores end up paying less over time. If your credit score is too low, lenders may refuse to offer you a loan altogether, or you may have to take out a bad credit car loan.

How Do I Raise My Credit Score?

The number one way to raise your credit score is to pay your debts on time. By keeping your sheet clean, there’s nothing to drag your credit score down. This means always planning your payments out, and never taking out more debt than you can repay.

You should also be utilizing your credit properly. You can’t raise your credit score without actually utilizing credit, but you also don’t want to use too much, or it looks bad to lenders. You should try to stay under 30% total credit utilization.

Finally, keep an eye on your credit reports. Make sure that there are no outstanding balances that you weren’t aware of, that everything is accurate, and that there are no signs of fraud.

Learn More About Hyundai Financing at Blaise Alexander Hyundai of State College

Auto financing can be difficult to wrap your head around, but we’re here to help. Talk to our financial wizards at Blaise Alexander Hyundai of State College to review your financing options today!

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