What is a Credit Score?

Getting a new car is an exciting process, but figuring out how to finance it can be a wholly different matter. Many factors go into determining your vehicle financing, and your credit score is likely the most important one. A credit score is a three-digit number which basically represents to lenders what amount of risk you pose as a borrower and the chances that you will fall behind on your payments over the course of 24 months.

There are many different types of scoring models, but the most commonly used model in the United States is the FICO credit score. A FICO score ranges from 300-850, with a lower score meaning higher risk for the financial lending institution.

So, how do you get your credit score? Your number is based off of a variety of factors, the most important of which being your payment history. It also includes amount owed, length of credit history, type of credit, and new credit.

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