How Your Credit Score Can Affect Kia Financing

Buying a new Kia vehicle is always exciting. Perhaps the most arduous part of the process involves financing. The experts in our Kia Financing Department in Folsom, CA know that credit scores are one of the top factors in determining financing options.

Allow the experts at Folsom Lake Kia to help you understand how your credit score can affect your loan terms.

What is a Credit Score?

Your credit score is a three-digit number that's based on different credit reports. These reports look at your income, payment history, the amount of debt you carry and how long you've been building credit. These factors are all considered in order to determine your credit score.

Credit scores can range from 300 to 850:

• 300-579 = Poor
• 580-669 = Fair
• 670-739 = Good
• 740-799 = Very Good
• 800-850 = Excellent

The higher the number, the better when it comes to getting a loan for anything, including a new Kia Soul. Why does it matter? There are a few reasons.

1. Easier to Get a Good Loan

A higher credit score indicates that you are more likely to pay back the loan, which is what lenders want. A good credit score means you're more likely to be approved, while enjoying other advantages when it comes to loan terms.

2. Better Loan Terms

If you can get a better loan, you may enjoy lower monthly payments on a new Kia Niro at our Folsom, CA Kia dealership. You may also get a lower interest rate, which affects how much you'll pay for the car over the life of the loan.

What if you Have a Lower Credit Score?

If you have a less-then-perfect credit score, don't despair. You may still qualify for a loan from a reputable lending institution. However, you may have to pay a higher interest.

What if I Have no Score?

Teenagers looking to buy their first car usually don't have much of a credit history. This can result in no credit score. In this case, you would need a parent of another adult to co-sign on the loan.

Buy Your New Car Today

If you're ready to buy or lease a new Kia, come into our Kia dealership in Folsom, CA for a test drive. You can speed up the loan process by filling out our online financing application. We look forward to helping you find the right car for your budget and needs.