Miller Auto & Marine Blog

Build Your Credit Score with These Elements

Adam Maciej
Posted by Adam Maciej on Nov 7, 2017 10:53:00 AM

When it comes to making a vehicle purchase, your credit score is a pretty important number. That is unless you're paying for the vehicle in full at the time of purchase. But, since the majority of vehicles are bought through financing, most buyers will use their credit score to secure their finance agreement. 

Before we talk about building your credit score, here's a little background on how this number affects finance agreements.

Credit Scores and Finance Agreements

Build Your Credit Score with These ElementsFinancing your car purchase means you're taking out an auto loan and agreeing to pay back your lender over a predetermined amount of time, at a predetermined rate. Typically, vehicle buyers secure an auto loan through a bank or a lender, and both banks and lenders consider your credit score when they decide whether or not to lend the money and how much risk is associated with doing so. 

A low or poor credit score makes you appear like a higher risk, and a high or good credit score makes you appear like less of a risk. So, a good credit score can increase the number of lenders willing to work with you to finance a vehicle purchase. And, you're more likely to secure a lower interest rate

Build Your Credit Score with a Finance Agreement

If you do have a low credit score and you need to make a vehicle purchase, all is not lost. Even though you may end up paying a higher interest rate, making on-time payments is a great way to build up your credit score. A finance agreement for a vehicle purchase lasts a number of years, and all of the regular payments you make during that time definitely pay off in the long run. 

Even if you have a low credit score now, a finance agreement gives you the opportunity to make regular payments and demonstrate that you are a lower risk to lend to. As a result, the next time you go to a dealership to finance a vehicle, you will most likely secure a lower interest rate. 

Protect Your Credit Score When Financing

It's important to note that while a finance agreement is a great way to build up your credit score, not following through with the terms of your agreement can have a negative impact on your credit score. Missing or making late payments is something you want to avoid, especially if you're working to build your credit. Because of this, be sure the monthly payment worked out in your finance agreement fits within your budget. 

Financing Your Vehicle 101 Download Your Free Guide

Topics: Car Financing

Subscribe to Our Blog


Recent Posts


Spend $50 - $99 and Get $10 Off Service  Spend $100+ and Get $25 Off Service Claim Your Service Discount
Search
Find Your Vehicle x

Search By Keyword

Search By Filters

Saved
Share
Share This x

Choose How To Share:

Contact
Contact Us x

(844) 966-8900

Call Now

2930 2nd Street South • St. Cloud, MN 56301

Get Directions

Today's Hours:

Open Today! Sales: 9am-9pm

Open Today! Service: 7am-5:30pm

Miller Auto & Marine

FB Twitter Goole +
2930 2nd Street South St. Cloud, MN
Phone: (844) 966-8900 https://www.google.com/maps/place/Miller+Auto+Plaza/@45.5473715,-94.1969124,17z/data=!3m1!4b1!4m2!3m1!1s0x52b45fa465eb20b3:0x6adb594d941c4f75

Sales

Phone: (844) 966-8900 - 9:00 PM

Sales

Phone: (844) 966-8900

Service

Phone: (844) 361-8146

Service

Phone: (844) 361-8146

Body Shop

Phone: (844) 361-8147

45.5473435 -94.1947084
[schema type="organization" orgtype="LocalBusiness" url="//www.millerautoplaza.com" name="Miller Auto & Marine" description="" street="2930 2nd Street South" city="St. Cloud" state="MN" postalcode="56301" country="United States" email="webleads@millerautoplaza.com" phone="(844) 966-8900" ]
Miller Auto & Marine
Miller Auto & Marine
2930 2nd Street South
St. Cloud, MN, 56301 United States
(844) 966-8900
Miller Auto & Marine 45.5473435, -94.1947084.