How Your Credit Score Impacts Car Financing

There are lots of factors that play into a Dodge financing approval, including your credit score. However, it isn’t the only factor we take into account. At Helfman Dodge Chrysler Jeep® RAM FIAT, we’re outlining how your credit score affects car financing and the other factors we consider.

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Buying Criteria

When you first apply for auto financing, we will collect your buying criteria. This includes your employment information, your income, your housing information, and your mortgage/rent payment amount. We also pull your credit to check your credit score. 

Approval Factors

There are many factors that go into determining your approval. Keep in mind, that these criteria will vary, depending on the lender. In general, lenders are looking for: 

  • A credit score of at least 700 
  • A debt-to-income ratio under 36 percent 
  • A stable work history 
  • An adequate income level

Outlying Factors

Outside of the factors that we discussed, there are outlying factors that can help your chances of being approved. So, if you’re concerned about your credit score, for example, there are additional steps you can take. Lenders are more likely to extend an offer to someone who is making a sizable down payment (or has a large trade-in value that they’re applying to their loan). It’s also easier to get a loan with a shorter loan term or you may even want to consider adding a co-signer. 

Loan Rates

Your credit score can also impact your loan rates. Lenders with a low credit score are more likely to get a high interest rate, which can seriously impact the cost of your vehicle. We encourage you to check out an auto payment calculator to see how your loan’s total cost can be affected.

Getting Preapproved 

If you’re concerned about your credit score, or your likelihood of being approved, we suggest to try getting preapproved. By getting preapproved, you can see if you’ll be approved for financing, as well as an estimate of your rates and payments. Plus, it doesn’t affect your credit to get preapproved. 

Apply for Dodge Financing in Houston, TX 

If your credit score isn’t where you want it to be, don’t get discouraged. Our financial experts can help you find an option that works for you. Visit our Dodge dealership in Houston, TX to get started today!