How Does Credit Work? – Getting Financed in Harrisburg, PA

You’ve finally found the dream car you’ve been searching for, and it is time to find the auto loan that fits your monthly budget best. Our expert finance team is here to get you guaranteed approval and secure that auto loan you need, no matter what your credit history may look like. But just what is your credit history and why do some people have good credit and others bad? Our experienced and knowledgeable finance managers are here six days a week to walk you through the finance process and answer any questions you may have.

Getting Started: What to Know about Credit

Most people understand that the better your credit is, the easier it is to secure a loan, mortgage or even a new credit card. Simply put, your credit looks at what you borrow money for, but more importantly, how well you are at paying back that money in an agreed upon amount of time. When applying for an auto loan, lenders look at both your credit report and credit score, but many don’t realize there is a difference. Your credit report is an in-depth look at your borrowing and repaying habits, while your credit score helps identify your risk as a borrower and how reliable you are at paying back loans. Too many don’t stay up to date on their credit score, and this sometimes leads to missed opportunities to maintain a favorable number in the algorithm. Checking free credit reports or scores from agencies like Experian, Equifax and TransUnion lets you know what areas you can improve. Keeping up with late payments or high balances nearing your credit limits can get you started on lowering your debt and rebuilding your credit.

Applying for Auto Financing

While there are some circumstances that a car, especially a used one, can be paid for in full, many people will apply to finance their new dream car. Much like anything else, you can get approved for a limit based on your credit history and score. From there, you’ll get a monthly amount to be paid back over a term, or the length of time you must pay off your loan. Most auto loans are 12-, 24-, 36- or 48-month terms, but could go longer. While longer terms may appear to be attractive because of their lower monthly cost, remember, every loan comes with interest, or the charge you pay for borrowing money. You may have to pay back more in interest the longer your term is. It may be optimal to get a shorter term if it doesn’t hurt your overall monthly spending.

Know Your Budget: What Car Do I Buy?

Car shopping is stressful enough – you want to make sure you get the right car that meets all your needs, whether it is for work, play or both. It helps to understand exactly what you can spend with the interest included, so your monthly budget isn’t an added stress to your wallet. Sometimes, a used car is best. Not only do used vehicles come at a lower monthly payment, but you’ll also sometimes find more value in the long run. A new car depreciates up to 30% in its first year and loses nearly half its value after five. That means when you’re ready to trade-in your vehicle to upgrade, you’ll get more value for your buck. And lucky for you, PA Credit King has a huge selection of high-quality used vehicles from which to choose.

Get Approved for Financing in Harrisburg

Come find out why we are the Harrisburg area’s trusted source for auto loans. Our expert finance team has spent years making valuable relationships with many lenders to ensure we can secure an auto loan that fits your budget. Worried about your credit score? Worry no more – fill out our online finance form and get pre-approved in minutes today!