What Determines Your Credit Score?

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Your Credit Score Can Make All of the Difference in Car Shopping Here at Piazza Mitsubishi!

Before you purchase a new or used car from Piazza Mitsubishi in Reading, PA, it is imperative that you have all the information you need at your fingertips about the financing process. This includes a look at your own credit score and financial history. As most of us cannot simply purchase a new or used car with cash, your credit score is one of the most important steps to the financing and leasing process. 

Your credit score can determine whether or not you qualify for an auto loan or lease agreement and it can influence many aspects of the purchasing process, from your annual interest rates to your down payment. While the financing or leasing process can often be overwhelming in this regard, we here at Piazza Mitsubishi want to be your allies throughout it all, so let us tell you all about the importance of your credit score and how it can impact your next auto loan or lease agreement.

What is a "Credit Score?"

If you are a relative novice to the lending or leasing process, as many first-time shoppers can be, this term might not resonate as strongly. Your credit score is a number which is based on your previous lending history, credit card history, employment status, and a variety of other factors. Your credit score typically ranges anywhere from 300 to 700 and above, with 300 being poor or "subprime" and over 700 being excellent; with this number, banks and other lending institutions can determine if you qualify for a loan or lien of credit based on your history of debt and whether or not loaning money to you could result in losses on their part. 

However, in today's world, your credit score can impact a number of other financial related decisions as it is often utilized by cell phone companies, insurance companies, landlords, and even employment at certain companies.

How Can I Find/Change My Credit Score?

You can find out your credit score through utilizing resources from three major credit bureaus: TransUnion, Equifax, or Experian. However, if you decide to move forward in an auto loan, our finance application will help locate were your number lies. Your credit score is often influenced by factors such as previous bills, outstanding loans, and credit card debt. As an example: if you are a student driver in Pennsylvania with outstanding student loan debt, you might want to check your credit score and make payment arrangements with applicable lenders. 

If you have a credit card (or cards) but use it sparingly and keep the credit bills payed off, your credit score will likely be higher than someone with a great deal of outstanding credit card debt. Overall, the more money you borrow or leverage from an organization, the lower your credit score will be.

How Does My Credit Score Impact Auto Financing?

Your credit score makes all of the difference, whether you are leasing a vehicle or owning one. In an auto loan agreement, you work with one of the banks or lending institutions we operate with here at Piazza Mitsubishi. This lending institution will look at your credit score and any outstanding debt history to ensure that lending this vehicle out to you is a safe investment on their part. Thus, if your credit score is lower, the lending institution might determine that you are less dependable to meet the monthly payment requirements for an auto loan than someone of exemplary financial standing. 

Now, our finance center here in Reading, PA always works to advocate for our customers, no matter their financial background. However, if we can secure you a low-credit auto loan, you might expect some caveats and stipulations to it. With a lower credit score, your annual percentage rate (APR), or monthly interest rate, for your loan might be higher in addition to your down payment. However, a low score might not be as discouraging as an auto loan agreement can be a fantastic way to build equity and help your score to bounce back, as long as all payments are made in a timely manner.

Credit score is also a determining factor in securing a new Mitsubishi lease agreement as well, as many lending institutions require a higher credit score to qualify you. If your score is lower, it could mean disqualification from a lease agreement or it may require you to pay an additional security deposit when you sign your lease agreement.

Come See Us in Reading, PA for More Information!

While this is a lot of information to process, but the good news is that you have resources right here at Piazza Mitsubishi who can help answer any remaining questions you have and can advocate for you to help get you in the vehicle you want at an affordable rate. Get started today by contacting our sales department to come down and test drive the vehicle you are interested in! Our dealership is located here at 3814 Pottsville Pike in Reading and we look forward to meeting you!

Contact

PIAZZA MITSUBISHI

3814 POTTSVILLE PIKE
Directions READING, PA 19605

  • Sales: (610) 921-1500
  • Service: (610) 921-1500
  • Parts: (610) 921-1500

Hours

  • Monday 9:00AM - 8:00PM
  • Tuesday 9:00AM - 8:00PM
  • Wednesday 9:00AM - 8:00PM
  • Thursday 9:00AM - 8:00PM
  • Friday 9:00AM - 6:00PM
  • Saturday 9:00AM - 5:00PM
  • Sunday Closed
  1. PIAZZA MITSUBISHI

    3814 POTTSVILLE PIKE
    READING, PA 19605

    • Sales: (610) 921-1500
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