A credit score is a number that determines your history of borrowing money and tells lenders whether or not you are a financial risk to them. Lenders typically include credit card companies, mortgage bankers and automobile dealerships who will all check your credit score before deciding how much money they are willing to lend you. The higher your credit score - meaning that you're a responsible loaner and pay back the money you've borrowed in a timely manner - the more likely you are to receive a loan from a lender. The lower your score, the less likely you are to receive a loan.

If your credit score is low and you wish to borrow money, lenders might grant you that loan but increase your interest rates whereas to encourage you to re-pay that loan in a timely manner before paying overly-excess amounts of interest. All in all, your credit score is a very important number and when looking to buy a new car will determine how much money you're able to receive - if any at all - when applying for an auto loan.

When looking to buy or lease a new car near Newtown Square, PA, it's important to know that your credit score is a critical deciding factor to whether you're able to receive an auto loan or not. It plays a pivotal role in determining what type of auto financing is available to you and at what interest rates lenders are willing to provide you. For people with a strong credit score, you should have minimal trouble acquiring an auto loan - but for those buyers with a lower score you may unfortunately run into some trouble when trying to receive adequate financing.

Throughout the car-buying process, though, it's important to stay determined and to not let a poor credit score affect your willingness to purchase a car. Although your credit score is imperative when seeking financial assistance to buy a car, it's certainly not the only factor that's in play. Some lenders will take other considerations into account when determining your loan - like pulling your recent history of on-time payments - to decide if even despite your low credit score you are still trustworthy enough to be granted a car loan. 

The good news is that once you receive an auto loan and begin making timely payments, you will simultaneously begin positively impacting your credit score will begin to strengthen your credit history with the more on-time payments that you make.

There are many best practices to improving and maintaining your credit score. Consider these five tips for keeping your credit score healthy:

For Pennsylvania drivers who are curious about their credit score and that have plans to acquire a new vehicle soon, we encourage you to visit our dealership in Newtown Square to begin the conversation of whether you'll be able to receive auto financing or an auto loan for your new vehicle. Please visit us online or join us in-person at our showroom to be assisted by our finance team in hopes of getting you behind the wheel of a new vehicle in 2019!