What Hurts a Credit Score When Applying For Chrysler Financing Near Memphis

Thursday, May 17th, 2018 | admin Wilson Auto Group

It should be no secret to you by now that having a good credit score can make financing a new Chrysler near Memphis much easier. It’s one of many factors that are considered when you apply for an auto loan, but make no mistake, it is an important one.

A credit score is what lenders look at to gauge how much they should lend you based on your credit history. What you may not realize, is that there are certain things you may be doing that could hurt your credit score right before you go to apply for an auto loan. Avoid making these mistakes so you can boost your credit score and get better financing options on your next vehicle!

Paying Late

You need credit cards and loans to help build up your credit score, but you have to make sure you don’t get in over your head by racking up more debt than you can pay back on time. Do it in small chunks that you know you can manage, which will make you look much more trustworthy in the eyes of lenders and banks.

Only Credit Cards Or Only Loans

It’s good to have a mix of both of these items when it comes to a credit score. When you’re considering your financing options on a Chrysler near Memphis, it’s good to have some student loans or a mortgage that you’re paying off, and a credit card at the same time. It gives them more to look at when reviewing your credit history.

High Balances

If you are looking to buy a new car, you should make sure you have paid down the balance on your credit cards. Having a high balance will work against you and your credit score, even if you’re planning on paying it off in a timely manner. A large purchase with your credit card right before you buy something like a car, will cause your credit score to drop until it’s paid off.

If you can avoid these situations, you’ll enjoy a much smoother financing experience. Contact Mid South Auto Loans today if you’re looking to finance a vehicle. Give us a call at (901) 316-3434 to get started.

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