A credit score is a three-digit number that reflects your creditworthiness based on your financial history and behaviour. It acts as a financial report card, summarising how you manage your credit and debt. Lenders, such as banks and financial institutions, rely on your credit score to assess the risk associated with lending you money.
Your credit score impacts things like whether or not your loan is approved, the interest rate that you will have to pay and if you get approved for other things like rental applications or even employment opportunities. Whenever you apply for credit of any kind, your credit score will be impacted. This is certainly going to be the case when applying for a car loan.
Here’s how a car loan can impact you.
It’s important to know your chances of success before applying which is where a finance broker can really help.