There are lots of perks to Toyota financing, although some buyers worry about extending their debt. When done responsibly, financing can actually be beneficial to your score. Our experts at Heritage Toyota Harrisburg are diving into all the details.
The Initial Application Process
Lenders use your credit score to see how responsibly you borrow money and pay it back. So, when you first apply for auto financing, we have to discuss your buying criteria and pull your credit.
Any time a hard pull is done on your credit, that can cause your score to drop, although it’s typically less than 10 points. This varies depending on your score, as well as how many inquiries are made.
Increasing Your Debt Mix
By adding an auto loan to your debt, you are increasing your existing credit mix. This can actually help you improve your credit score — it helps to establish you as a responsible borrower by showing that you can manage multiple types of debt. Plus, it’s helpful to help you establish credit history, if that’s something that you are lacking.
Making On-Time Payments
One of the biggest ways that an auto loan can improve your credit score is by demonstrating your ability to make regular, on-time payments. Payment history is one of the most important factors when it comes to your credit score. If you continue to make your auto payment each month, before the deadline, you will likely see your score continue to climb.
Apply for Toyota Financing in Harrisburg, PA
With timely payments, you don’t have to worry about financing affecting your score. In fact, as you can see, it could even improve it. Visit Heritage Toyota Harrisburg to apply for Toyota financing today!
