Your Credit Score And Car Finance

Your Credit Score And Car Finance

Buying a car can be an exciting time for every driver. Many have a good idea of the specific car they want, model, make and even the colour. You may have already weighed up your options, of purchasing brand new or even second-hand and have decided that a used car would be the best economical decision for right now. But sometimes even the most detailed purchase plans go out the window when we realise we still need to overcome the finances of buying the vehicle. For some, they may have a small portion of the money saved up and for others, they still need to consider taking out a loan. Securing car finance Auckland can be daunting to a new driver, whether they are looking to buy their first car or are an experienced buyer in search of new wheels.

A significant factor of an approved car finance application comes down to your credit score. It can have some feeling uneasy and may even postpone your plans for purchasing a car right now. And unfortunately, the perfect credit score is not always attainable for most of us. In between paying off existing loans, mortgages and racking up your credit card, it’s easy to understand how so many of us end up with poor scores. At Rides2Go, we are in the business of helping you drive the car you want and that includes supporting your plans with car financing.

With this article, we hope to give you some pointers on adjusting your credit score to benefit you with future loan applications. Here are top tips for securing car finance with an improved credit score.

Validate Your Credit Score 

You may be surprised to find out that your credit score is negative due to an error. You need to validate that your credit score is an accurate reflection of your spending over the last few years. You may have paid off debt some time back, that seems to still be appearing on your report.

Reconcile Your Finances 

After confirming your credit score is correct, it’s time to look at your mounting debt. Make a reconciliation of your current debt, how much you have paid off and how much you need to complete payment.  Although this can be a lengthy process, you will have a clear indication of your financial health.

Put A Repayment Plan Into Action 

Once you have worked out how much debt you have, it’s time to put together a repayment plan in order to improve your credit score. Start by automating your debit orders on loans, ensure that you pay the required amount every month and keep track of every payment.

Even though these steps will not instantly strengthen your credit score, by starting them now you have a better chance of an approved application in a few months. Receiving car finance in Auckland should not be a complicated or uncomfortable experience. We aim to be as transparent as possible with each applicant, providing valuable feedback to help you get one step closer to making the big purchase. Speak to us today at Rides2Go, to learn more about our finance solutions and application process.