You might have several questions about Acura financing and what it does to your credit score. Our dealership can explain all the risks associated with auto financing and how you can improve your financial standing. Acura of Sherman Oaks is here to clarify whether auto financing hurts your credit and your options.
What Will Acura Financing Do to My Credit Score?
You might be nervous about how a car loan or lease will impact your credit score. When you apply for financing, the lender will check your credit report to determine your financial standing. This ensures that you receive an appropriate offer tailored to your situation. It also reassures them that loaning money to you isn’t a risk on their end.
Avoiding or Minimizing Credit Penalties for Car Loans
Car loans result in a small and temporary drop in your score because they rely on a hard credit inquiry. Minimizing your applications minimizes this impact. Pre-qualifying instead of applying, while not as precise as an application, won’t incur a penalty at all.
How to Improve Your Credit Score
How do you bring your credit score to its prior level or even boost it? Making on-time payments will improve your credit score. You may see a further boost if your car loan is your only non-revolving credit line since it diversifies your credit mix.
You also want to remain current on all other financial obligations outside your auto loan. Keeping your monthly payments down and keeping credit card usage to a minimum help to preserve a good credit rating.
Explore Acura Financing Options at Acura of Sherman Oaks
Once you know how to bounce back from this slight credit score dip, you can confidentially find suitable financing options. Visit Acura of Sherman Oaks today to discuss Acura financing offers and test-drive the latest models.
