Frequently Asked Financing Questions

It can be tough enough buying the right car without even thinking about how you’re going to pay for it. At Fisher Kia, we work hard to make the financing process as clear as possible, but we know that drivers are always going to have questions, so our finance team compiled a list of our most frequently asked questions to help make the car-buying process even easier.

How can I guarantee that I will receive a loan?

There’s no way to guarantee a loan, but having a good credit score and paying your bills on time helps immensely. Try not to worry too much about your credit score, either; our finance experts work one-on-one with drivers to find the best way for you to drive home the car you want.

Will a poor credit score affect me forever?

No! In fact, the instant you start paying bills on time and paying off debt, your credit score starts to rise. Old problems have less of an impact on your credit score, and a car loan (paid regularly and on-time, of course) is an excellent way to build up to a great credit rating. Better credit scores are more likely to lead to better interest rates than to deny you a loan, too.

What is a good credit score?

Many people have an idea of whether they have good credit or not, but how do you actually tell if your credit rating is good? A “prime” borrower is someone with a credit score of 660 or higher – the higher the score, the better interest rates and options there are. Subprime borrowers are those with a score below 660, and they can be viewed as higher risk.

Will checking my credit report damage my score?

When you check your credit score, it’s called a “soft inquiry,” and it’s only seen by you. Any application for credit can lower your score by a point or two to help prevent someone with decent credit from taking out loans beyond their means.

Can I get a loan with a bad credit rating?

We believe in doing everything we can for our drivers, and that includes working one-on-one with drivers who have bad credit ratings to find some solution that works for them. Bad credit scores are not an automatic roadblock to financing.

What if I don’t have a credit rating?

Most people have a credit score, but if you are buying your first car, you may not have any credit rating yet. The best ways to offset a lender’s risk (and thus their unwillingness to loan money) is to come in with a significant downpayment. We recommend a 20% down payment for drivers without a credit background. You can also take advantage of specific financing offers for first-time buyers, college graduates, and military service personnel.

How can I improve my credit score?

The easiest way to improve your credit score is to pay your bills in full and by their due dates. A car loan is an excellent way to have a regular monthly payment that impacts your credit score, but paying any bill in full will help improve your number.

Do lenders use a specific credit reporting agency to check scores?

It can vary from lender to lender, but the three major reporting agencies – Experian, Equifax, and TransUnion – all use the same scoring system. VantageScore is a generic scoring system that pulls from all three agencies for a composite view.

Does paying cash help my credit score?

No. If you want to improve your credit score, you will need to use the credit you have and pay those bills on time. One of the best ways to do this is to make purchases on a credit card that can be paid in full each month and on time.

Do you have to have a lot of money or a lot of assets in order to have good credit?

No, bank account balances and personal assets do not appear on a credit check. By making payments on time and showing that you using your credit responsibly, your credit score will slowly increase.

What is a lease and how is it different from a loan?

A lease is a short-term agreement that puts you behind the wheel of a new car with the understanding that you will either return the vehicle or purchase it at the end of your lease. On a lease, you pay for the depreciation of the vehicle instead of its full cost, resulting in a lower monthly payment than traditional financing.

Did We Answer Your Questions?

We did our best to bring together the most frequently asked questions for you, but we know it’s impossible to answer them all. That’s why we have a knowledgeable finance team on site at Fisher Kia. Contact us online or by phone at (303) 245-6418 with any financing questions you have, and feel free to drop by our dealership at 6025 Arapahoe Rd in Boulder to chat with a finance counselor in person.