Does Credit Matter When Applying for Financing?
Are you ready to purchase a new vehicle and are you considering applying for a loan? Lenders look at a number of parameters before extending auto financing to buyers. Our Toyota finance experts are outlining the process to help ensure that you’re prepared.
How Do You Apply for Auto Financing?
You can apply for financing anytime at Sansone Toyota or even conveniently apply online. Our application includes just a few quick questions.
Here’s the information we’ll need:
- Your name and contact info
- The vehicle you’re interested in
- Your social security number and date of birth
- Your address, housing status, and rent/mortgage cost
- Your employer, position, and income
Will You Pull My Credit Report?
Once we collect your buying criteria, we’ll pull your credit report. Lenders want this information so they can see your existing debt, as well as how responsibly you’ve borrowed in the past. Your credit will also affect your interest rate.
What Credit Score Do I Need?
There isn’t a hard and fast rule, although most lenders look for a credit score of at least 600 to extend an auto loan. Typically, for a Toyota lease, the minimum score is a bit higher. Keep in mind, there are many lenders that work with buyers that don’t have the best credit, although the terms may have extra parameters.
How Can I Improve My Odds of Being Approved?
Some lenders work specifically with buyers with low credit, although the loan can come with a higher interest rate, which can add significantly to your costs. If possible, consider making a larger down payment or using a Toyota trade-in, which can limit how much you have to finance. It can also demonstrate your buying power to lenders.
Do I Need to Get Preapproved?
It isn’t necessary to get preapproved when financing new Toyota cars. However, if you’re concerned about your credit or your chances of being approved, it could be beneficial so you can avoid any surprises when you apply. Plus, it can help you see how much you can afford.
Toyota Financing at Sansone Toyota
If you still have questions, feel free to stop by our Sansone Toyota auto finance center to chat with our financial experts anytime. We’re happy to discuss your financing options and help you secure a loan today!