Credit Score FAQ | Mission, TX
Your credit score is an important aspect of earning a vehicle loan. For creditors to loan money to you for a new or used vehicle purchase, they like to see a number that reflects good credit. Thus, the higher your score, the more likely you are to be approved for a loan — and the better the interest rate will be.
Below are some frequently asked questions regarding credit scores.
How Can I Find My Credit Score?
There are a number of free and paid services to check your credit score online, such as Experian® and Credit Karma™. When you apply for a loan at your bank or credit union — or at Bert Ogden Mission Kia — you should be able to ask for your credit score as well.
How Do I Raise My Credit Score?
There are a few major factors that determine your credit score. By improving in each area, you can raise your score.
- Payment history: Do you pay your bills on time? The more you pay on time without any late bills, the better your score will be.
- Amount of debt: How much of your available credit do you use? Keeping your credit utilization low (using a small percentage of the credit available on your credit card and immediately paying it off) can improve your score.
- Account mix: Having a diverse credit mix (mortgage, auto, credit card, etc.) boosts your score.
- Age of accounts: The longer you have had accounts open (and paid them on time), the better your score will be.
What Is A Good Score?
Different lenders have different ideas about ideal credit scores, and with multiple credit agencies with varying scales, it can be challenging to recommend a single number. However, the majority of scales are on a scale of 300 to 850 with 700 being an ideal number.
For more answers about credit scores and financing options, contact the experts at Bert Ogden Mission Kia.