Does Credit Matter When Applying for Financing?

If you've never financed a car before, you probably have some questions. One that we hear frequently here at Helfman Alfa Romeo of Houston is “Will my credit affect my ability to finance a car?” Our Alfa Romeo finance experts say yes, but there's more that you should know.

What a Credit Score Means to Lenders

When you apply for financing, we work with a wide range of lenders to find a car loan that works for you. Lenders look at your credit score and your credit history to see if you're someone that they can trust to pay back a loan. Your income, your other financial obligations, and your history of on-time payments can all paint a picture for potential lenders.

A better credit score generally means a lower interest rate, or APR. This can make a huge difference over the course of your loan term, so you obviously want the lowest rate possible.

What If I Have Bad Credit?

If your credit history isn't perfect, don't despair! There are some ways that you can improve your chances of getting a loan or worry less about interest rates. You can:

•  Get a Co-Signer: If you can't get a loan on your own, a co-signer can help. This is someone with good credit who can sign onto the loan with you and take responsibility for it if you default.
•  Place a Larger Down Payment: If the proposed interest rate is higher than you would like, you could also place a larger down payment. This means taking out a smaller loan and paying less interest.
•  Buy a Used Car: If a new Alfa Romeo car seems like it's out of your price range, then consider a pre-owned model. These cars tend to be less expensive, which means a smaller loan and less interest to pay.

Some combination of the above methods could also work! If you have any more questions about financing, visit our Alfa Romeo dealers in Houston. We'll help you get the financing that you need!