Credit Scores and Car Loans: What You Need to Know

Credit Scores and Car Loans: What You Need to Know

If you’re thinking about buying a new or used car, you need to do some homework before heading out to your favorite car dealership, like Berlin City Toyota, serving Portland, South Portland, Westbrook, Falmouth, Gorham, Scarborough, Cape Elizabeth, Cumberland Center, Cumberland Foreside. Your credit score does matter when it comes to car buying, and the better your credit score, the better off you’ll be when it comes to buying or leasing a new or used vehicle including these and other makes and models currently on the Berlin City Toyota lot:

New Toyota 4Runner
New Toyota Avalon
New Toyota Avalon
New Toyota Camry
New Toyota Camry Hybrid
New Toyota Corolla
New Toyota Highlander
New Toyota Land Cruiser
New Toyota Prius
New Toyota Prius C
New Toyota Prius V
New Toyota RAV4
New Toyota Sequoia
New Toyota Sienna
New Toyota Tacoma
New Toyota Tundra
New Toyota Venza
New Toyota Yaris

If you have a high credit score, your interest rates on a car loan will be lower than if you have a low credit score. You can find out your credit score prior to car shopping by checking websites such as Equifax, Experian and TransUnion. If you are not even sure what is considered a good (or bad) credit score, use this ranking system to get an idea of where you fall in the credit score range:

Excellent: 720 and above
Good: 68-719
Average: 620-679
Poor: 580-519
Bad: 500-579
Miserable: 500 or lower
The good news is that even if you have poor credit or no credit, car dealerships like Berlin City Toyota serving Portland, South Portland, Westbrook, Falmouth, Gorham, Scarborough, Cape Elizabeth, Cumberland Center, Cumberland Foreside and surrounding areas work with car buyers with credit issues. So, if you have your heart set on a used or new car like the ones listed here, you may be able to get financed even with a less-than-stellar credit score:

New Toyota 4Runner
New Toyota Avalon
New Toyota Avalon
New Toyota Camry
New Toyota Camry Hybrid
New Toyota Corolla
New Toyota Highlander
New Toyota Land Cruiser
New Toyota Prius
New Toyota Prius C
New Toyota Prius V
New Toyota RAV4
New Toyota Sequoia
New Toyota Sienna
New Toyota Tacoma
New Toyota Tundra
New Toyota Venza
New Toyota Yaris

According to information provided by Experian Automotive, the difference in interest rates on a new car loan for someone with excellent credit versus someone with poor credit is nearly 10 percentage points. In 2014, 2.7% was the average interest rate for people with excellent credit whereas those with poor credit paid an interest rate of 12.42%.

However, keep in mind that even if you have bad credit, Berlin City Toyota will do everything in our power to get you in a vehicle you love at a price you can afford. It’s a misconception that people with poor credit can only buy older car models; even with bad credit you can drive off the Berlin City Toyota lot in one of these models:

New Toyota 4Runner
New Toyota Avalon
New Toyota Avalon
New Toyota Camry
New Toyota Camry Hybrid
New Toyota Corolla
New Toyota Highlander
New Toyota Land Cruiser
New Toyota Prius
New Toyota Prius C
New Toyota Prius V
New Toyota RAV4
New Toyota Sequoia
New Toyota Sienna
New Toyota Tacoma
New Toyota Tundra
New Toyota Venza
New Toyota Yaris

The best way to find out about car financing is to stop by Berlin City Toyota in Portland, Maine and speak to one of our friendly, professional sales team members who will explain your options and discuss with you whether leasing or buying would be best.

If you live in or near Portland, South Portland, Westbrook, Falmouth, Gorham, Scarborough, Cape Elizabeth, Cumberland Center, or Cumberland Foreside, simply stop by today, or you can contact us by phone and learn everything you need to know about how your credit score affects your car-buying options without ever leaving your home. We really do make car buying easy and we’ll do everything we can to get you financed with a monthly payment that fits nicely within your budget.