Understanding the Role Credit Plays in MAZDA Financing
Many drivers decide to finance their new car purchase rather than paying cash upfront. Credit is one of the most important factors to consider when taking out a loan for a car, and to help our neighbors save time and money when financing a vehicle, our local Mazda finance team put together this guide on how credit impacts the process.
Understanding Credit Scores
Credit scores are used by financial institutions to determine whether you are likely to repay any money they lend you. A credit score is calculated by looking at your past financial behavior and can be used by lenders to determine whether they will issue a loan and if so, at what interest rate and for what amount.
Credit scores range from 300-850 and are based on several factors, including payment history, debt burden, and length of time in good standing with creditors. A higher score makes it easier for lenders to trust that you'll pay back any debt incurred through borrowing money from them in the future.
The Impact of Credit on Loan Terms
The first step to financing at our Woodbridge, NJ, Mazda dealership is checking your credit score to determine what your loan terms and interest rate will be. In general, the higher your credit score, the lower the interest rate on your loan will be, as a high score reflects a lower chance of default risk.
Similarly, a higher score may qualify you to borrow larger sums of money. The inverse is also true, where a low credit score can indicate higher levels of risk to lenders, which can result in higher interest rates and smaller loan amounts.
Online Tools to Help You Finance a MAZDA Vehicle
To help you finance a pre-owned or new Mazda model, we offer several online tools to make the process easier than ever. You can apply for financing through our webpage, and we even offer an online Mazda payment calculator through which you can estimate your monthly payments based on the purchase price of the vehicle, your interest rate, loan term, and other factors.
Check Out Our MAZDA Finance Offers at Sansone MAZDA Today
Whether you are financing a new or pre-owned vehicle, credit plays an important role. But financing your next ride doesn't have to be a headache, especially with our helpful associates on your side. Call or visit us online at Sansone Mazda today and take the next step toward owning the car or SUV of your dreams!