Improving Credit Scores

Make a Larger Down Payment

The more money you finance, the more financial liability you take on. This does not go unnoticed by lenders or credit bureaus, who use metrics like debt-to-income and debt-to-limit ratios to determine how much they want to loan you and at what interest rate.

If your credit score is low or you have existing debt, these and other metrics may already be unfavorable. In such a scenario, trying to take out a large car loan will only further dissuade lenders from issuing you a loan. If they do approve your finance application, it will likely be at a higher interest rate than you’re comfortable with.

You can combat this by making a larger down payment. This directly reduces the amount of money you need to finance and lets you establish equity in the vehicle, helping enhance your credibility as a borrower. Taking on less debt will also improve the ratios used to measure creditworthiness, which can go a long way toward improving your credit score.

Pay Off Existing Debt

Saddled with unpaid bills? Consider paying off existing debt before buying a new Chevrolet in New York. Lenders may factor in outstanding loans and balances when issuing credit approvals, and earmarking funds to pay off credit card or other debt will help reduce your current interest costs as well.

We suggest getting started by taking stock of your assets, liabilities and income. Compiling this information can help you determine how to pay off existing debt and what kind of car you can currently afford. To learn more about how to budget for a new car, contact Mount Kisco Chevrolet . Whatever your credit history may be, we are here to help.