How well-versed are you on credit scores? We at Ontario Drivez Marketing & Auto Financing are prepared to dispel a few urban legends that you may have heard. When you are ready to apply for a used vehicle loan, you will be better informed about your credit condition and the best course of action if you know which claims are misconceptions and how to improve your credit score. So, we have discussed a few myths about credit cards you should know.
You Can Not Repair Bad Credit
Most people believe this statement is true, but in fact, our team is here today to tell you that it is false. Anyone can improve their credit with the right steps. All you need is the right mindset that you can do it and be able to work hard at it to see results. Making your regular payments on time and paying off your build-up debt are great ways to improve your credit.
Checking Your Credit Will Lower It
“Soft checks” are characterized by checking a free credit checking service or through a credit bureau that will only display your score and history. These types of checks are harmless to your score. On the other hand, “hard checks” are when a credit provider checks your credit. These types do impact your score. Hard checks are recorded on your file and can lower your score by 10 or 20 points. Eventually, you will get these points back.
Bad Credit Means You Won’t Get Approved
This is a myth. If you have bad credit, you can still get approved for a car loan. It’s just that your interest rates may be higher than those with good credit. If people with bad credit never got approved, most people would not be allowed anything – which is not realistic. The credit score system is meant to give incentives to keep a good credit score.
No Debts Equals Good Credit
Although being debt-free puts you in a strong position, having a good credit score is not a guarantee. A credit score is calculated by looking at your credit history, which includes loan and credit card payments, to determine whether you have a strong track record of making on-time payments. No one will know if you can make on-time payments if you have no credit history, thus you won’t have a decent score. Being debt-free is less effective than having a great credit history.
How We Can Assist
Our team at Ontario Drivez Marketing & Auto Financing is always interested in assisting you in obtaining a well-used car loan. So talking about the fallacies surrounding credit scores is pertinent. Understanding which myths about credit cards are true and false will help you negotiate the best conditions for your auto loan. Let our specialists point you in the right direction if you’re looking for an auto loan. Call our staff at (905) 956-4700 or online at Ontariodrivez.com right away to speak with a financial expert about your circumstances.
