How much do you know about credit scores? Our team at Good Fellow’s Auto Wholesalers is ready to clear up several myths that you might have heard before. Understanding which statements are myths will help you to better understand what a credit score is so that when you are ready to obtain a used car loan, you will more adequately know your credit situation and the right choices to make.
You Can Not Repair Bad Credit
Most people believe this statement is true, but in fact, our team is here today to tell you that it is false. Anyone can improve their credit with the right steps. All you need is the right mindset that you can do it and be able to work hard at it to see results. Making your regular payments on time and paying off your build-up debt are great ways to improve your credit.
Checking Your Credit Will Lower It
“Soft checks” are characterized by checking a free credit checking service or through a credit bureau that will only display your score and history. These types of checks are harmless to your score. On the other hand, “hard checks” are when a credit provider checks your credit and these types do impact your score. Hard checks are recorded on your file and can lower your score by 10 or 20 points. Eventually, you will get these points back.
Bad Credit Means You Won’t Get Approved
This is a myth. If you have bad credit, you can still get approved for a car loan, it’s just that your interest rates may be higher than those with good credit. If people with bad credit never got approved, the majority of people would not be allowed anything – which is not realistic. The credit score system is meant to give incentives to keep a good credit score.
Good Credit Means No Debts
Although having no debts puts you in a good position, it does not mean you will have a good credit score. A credit score works by taking a look at your credit history (like paying credit cards and loans) and seeing if you have a good record in paying them on time. If you have no credit history, you will not have a good score because no one will know if you can pay for things on time. Having a strong credit history is more powerful than having no debts.
How We Can Help
Here at Good Fellow’s Auto Wholesalers, our team is always interested in helping you to secure a good used car loan and that is why discussing the myths of credit scores is relevant. If you understand what is real and fake with credit card myths, you are on a better path to secure the best terms for your car loan. If you are looking for a used car for sale in Toronto paired with a great auto loan, let our team let guide you in the right direction. To discuss your financial situation with a specialist, contact our team today at 1 (855) 581-9590 for more information.