Your credit score enables you to get more things on credit or get approved for financing. For many people that have no credit or low credit, buying things that require financing is usually a problem, but not with Stanley Automotive Finance Enterprise or S.A.F.E. S.A.F.E. is the primary financial source for financing vehicles at all Stanley Dealerships. Whether you are in Dallas, Ft. Worth, Plano, or anywhere nearby, you can get automotive financing from S.A.F.E.
Getting a car loan can help improve your credit score. A car loan affects credit in two ways. First, it causes a hard inquiry to your credit report, which can temporarily lower your credit score by a few points. Later, auto financing can increase your credit rating, assuming you don’t have any late or missed payments.
Aside from securing an auto loan and keeping your payments up and keeping them paid on time, five other things can influence your credit score: Payment History, Utilization Ratio, Length of Credit History, New Credit, and Types of Credit.
This may be one of the most important factors that affect your credit score. It is believed that this factor makes up about 35% of the total FICO score, and this is what lenders use more frequently.
Utilization Ratio is about 30% of your credit score, and it compares your total outstanding balance to your total credit limit. The outstanding balance is the money you owe, while the credit limit is the maximum amount of money you can borrow. Your goal should be to use 20% or less of your total credit limit.
Your credit history can improve your credit because older is better. If you have credit cards, it is best to keep them open, whether in use or not. When a new credit account is opened, like a car loan, it lowers your score because it reduces the length of your credit history which makes up about 15% of your score.
This represents about 10% of your credit score. This means that the more you apply for different loans, the lower your score drops, especially if the applications are in a short time frame.
The credit types are Installment and Revolving. Installment Credit is credit in which you pay a regularly scheduled, fixed amount each month. Student loans, car loans, and mortgages are examples of this type of credit. The other type of credit type is Revolving Credit; a credit card is a good example. Revolving credit has constantly changed payments and balances. Credit type makes up around 10% of your credit score.
An auto loan has a high chance of affecting your credit score. These loans are usually added as an installment account, so you pay the same monthly amount for a pre-determined time frame. If you make your payments on time each month, your report will show “paid as agreed” or “current”. Since your payment history has the greatest effect on your credit score, having installment credit that reflects current, up-to-date payments may greatly benefit your credit score.
So go ahead and apply for financing with SAFE. We’ll work together to get you a good vehicle and improve your credit score.
