Car Finance & Credit FAQ

How is my credit score determined?

Credit History: How long have you had credit? Have you made payments on time? Have you missed payments? Have you become delinquent?

Balance on Credit vs. Available Credit: if your credit balance is high relative to your available credit, your score will suffer

Will running my credit hurt my credit score?

Running your credit will hurt your credit score if you run your credit frequently over a short period of time. If your credit application is sent to an excessive number of banks, your credit score can suffer. If you run your credit at multiple dealerships and each dealership sends your application out multiple times, it can hurt your credit.

At American Chevrolet we work closely with our lenders and send your application to the best fitting bank. Sometimes your application will be sent to a handful of banks in order to obtain the best rate or to get the loan bought. We work with you to ensure your application doesn’t get distributed more than necessary so your credit doesn’t suffer.

How do I build my credit score?

You build credit by acquiring credit. Slowly building credit with small accounts will allow you to build your credit score over time. An automotive loan that is paid on time each month and eventually paid in full will help you build your credit score.

What causes my credit score to drop?

Failure to pay back loans. Accounts that go to collections will drop your score rapidly. An increase in your balance on available credit will drop your score. Closing credit accounts and reducing your credit history will drop your credit score as well.

Will taking out an auto loan help build my credit score?

Yes, if you pay on time. If you take out an automotive loan and fail to pay on time, it will greatly hurt your credit score.

Can I apply for an automotive loan before I arrive at the dealership?

Yes! You can submit a credit application here: https://www.americanchevrolet.com/FinancePreQualForm. Once we receive your submission, we’ll run your credit to determine your score. From there, we will have a discussion with you as the customer to determine next steps. In order to finalize your interest rate, we’ll need to send over a structured deal to the banks to determine what interest rate you’ll qualify for.