One of the biggest factors that goes into the interest rate on your Jaguar loan is your credit score. Put generally, the higher your credit score, the lower your interest rate will be. Of course, there are exceptions, but here at Jaguar Peabody, one of the most common questions that our Jaguar finance professionals receive is related to how to raise a credit score to get a more favorable interest rate.
Why Your Credit Score is Important
Having a high credit score is important for a number of reasons, but in the realm of auto finance, a high credit score means that the lender assumes less risk when taking on the loan. The high-credit-score borrower is then rewarded with a lower interest rate on their loan.
How to Obtain a High Credit Score
If you’re finding that your credit score isn’t where you would like it to be, there are ways to raise it before you decide to apply for a Jaguar loan. Here are some ideas:
- Pay your bills on time: The most important factor that goes into your credit score is your payment history. Late payments can damage your score, so be sure to pay on time.
- Keep balances low: Your credit utilization ratio is the amount of credit that you’re using compared to your credit limit. Aim to keep this number below 30 percent.
- Don’t open too many accounts: Applying for more than a couple of new accounts in a short period can damage your score. Try to limit your credit applications.
Apply for Jaguar Financing in Peabody, MA
Here at Jaguar Peabody, we provide Jaguar financing, as well as a large inventory of new and pre-owned Jaguar cars. Stop by today to begin your Jaguar journey!
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