It’s no secret that when it comes to buying a new Infiniti – or any other vehicle – your credit makes a big difference in the loan you can get. That’s because lenders look at your credit score when determining if you’re a good risk in lending you money. The better your credit, the more likely you are to get a great new car loan. But have you ever wondered just what is considered good credit? The FICO credit scoring model is the most commonly used system for measuring a consumer’s credit-worthiness. This system has been in place since 1989, and is used by lenders nationwide in approving or denying loan applications. The FICO model uses a scoring system of between 300 and 850 points, with the higher numbers representing better credit scores. more How Credit Scored are Determined The FICO scoring model was developed to determine the risk associated with lending to an individual. By assigning a point value to a potential borrower, it allows lending institutions to gauge how much risk they were taking on. The lender can then compensate for that risk by charging a higher interest rate to borrowers that were determined to be a higher risk. The FICO system uses 5 basic metrics in determining your credit score. These metrics and the relative weighting of each are as follows: Payment History – 35% Amounts Owed – 30% Length of Credit History – 15% Types of Credit Used – 10% Newly Acquired Credit – 10% These metrics are then used by the three major credit reporting agencies; Experian, Equifax and TransUnion to assign a score based on their own proprietary algorithms. The basic information they all use is the same, but because each uses a different way of calculating, the scores from each agency can vary by a certain amount. So, What is Good Credit? According to most experts, a credit score greater than 750 is considered excellent. Any score above 700 would generally be thought of as good credit, and a score of between 650 and 700 can be considered fair. Credit scores below 620 or so are thought of as poor to very poor. So, if your credit score is 700 or higher, you can expect to receive more favorable loan terms and a lower interest rate or APR. If your score is more than 750, you can expect to receive the best terms a lender is likely to offer. Here at Sawgrass Infiniti, our loan experts work to find the best loan and terms possible to match any financial situation. We work with lenders of all types to match up those with good credit and even those who have some credit challenges. If you’re interested in learning more about how your credit score will impact your purchase of a new or pre- owned Infiniti vehicle from Sawgrass Infiniti, call or stop by and speak with one of our loan experts. Chances are good that we can find you the right loan and the right payment amount to make buying your new Infiniti a reality.
