Hunt Chrysler Center knows that auto financing can be confusing. From choosing whether to buy or lease to understanding the impact of auto financing on your credit score, there’s much to keep track of. This guide will help you navigate Chrysler financing while maintaining your credit health.
Car Financing and Credit Inquiries
There are two ways to compare rates among lenders. One, pre-qualifying for financing, provides a bird’s eye view of your credit using a soft inquiry; this does not affect your credit. The other, applying for financing, involves a more granular examination called a hard inquiry; this will cause a slight but temporary credit score decrease.
Short-Term: Timely Payments are Key
Even a minor hit can be frustrating if you’re building your credit or safeguarding what you’ve already built. However, your score will bounce back if your loan or lease payments are on time. After all, consistent payment history is one of the major factors credit bureaus consider when determining your credit score.
Long-Term: How Financing Helps Your Credit Score
Though there may be a slight dip initially, diversifying your credit mix and responsibly managing your auto loan can positively affect your credit. A successfully paid-off auto loan shows future lenders that you can handle credit responsibly, which can raise your score and aid in securing credit in the future.
Chrysler Financing Assistance at Hunt Chrysler Center
At Hunt Chrysler Center, we aim to help you finance your Chrysler while maintaining or improving your credit health. We are here to guide you through the financing process, answer your questions, and offer solutions that align with your financial situation. Visit us in person to learn more, or contact us online with your questions.
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