Understanding Your Credit Score Before Buying a Car

Before you start shopping, it helps to understand how your credit score affects your car-buying experience. Lenders use your score, along with income and debt levels, to determine your interest rate and loan terms.

Generally, higher credit scores unlock lower interest rates, which can save you thousands of dollars over the life of an auto loan. But even buyers with fair or building credit can qualify — often the loan terms are simply structured differently, such as a larger down payment or shorter term.

Checking your credit report ahead of time lets you catch and dispute any errors before they affect your rate. It's also wise to avoid opening new credit accounts right before applying for an auto loan, since new inquiries can temporarily lower your score.

Not sure where you stand? Our finance team at Kenosha Auto Group can walk you through the process and match you with lenders suited to your credit profile — get started with our online pre-approval form.