Credit Score FAQ

Simply put, a credit score is a figure used to make generalizations about your credit history. By looking at this score, lending institutions assess the risk of issuing you a loan. A credit score balances negative and positive aspects of your credit history, resulting in a single figure. When it comes to credit scores, higher numbers reflect more positive scores, meaning lending institutions are usually more willing to offer favorable lending terms to individuals with higher credit scores.

Credit scores take into account many factors, but some of the most important include the length of your credit history, current debt owed, how many lines of credit you have, and how regularly you make payment on credit lines.

If you have little credit history or poor credit, there are a number of ways you can improve your credit score. You can start by paying off existing debt, having open lines of credit, and making prompt, regular payments on those lines of credit.

Generally speaking, having a higher credit score leads to better financing terms when it comes time to buy a vehicle. This translates into lower down payments, lower monthly payments, and favorable interest rates.