What’s My Credit Score Got to Do With Car Buying? Here’s What You Need to Know

What’s My Credit Score Got to Do With Car Buying? Here’s What You Need to Know

If you’re thinking about buying a car, you’ve probably heard a lot of talk about credit scores. But what does your credit score actually have to do with car buying — and how can it impact your deal?

At Dream Work Automotive, we believe in helping our customers make informed, confident decisions. Here’s what you need to know about your credit score before you head to the dealership.

Your credit score is a three-digit number (usually between 300–850) that tells lenders how trustworthy you are when it comes to borrowing money and paying it back. It’s based on your credit history, including:

• Payment history
• Amounts owed
• Length of credit history
• Types of credit used
• New credit inquiries

In short, the higher your score, the more confident a lender is that you’ll pay back your loan on time.

When you finance a vehicle, your credit score plays a major role in three key areas:

1. Loan Approval
2. Your credit score helps lenders decide if they’ll approve your loan.
3. ✅ Higher score → better approval odds
4. ✅ Lower score → may need a co-signer or special financing
5. Interest Rate (APR)
6. Your credit score heavily impacts the interest rate you’ll pay on your loan.
7. ✅ Excellent score → lower interest rate → lower monthly payments
8. ✅ Poor score → higher interest rate → more expensive over time
9. Down Payment Requirements
10. Some lenders may require a larger down payment from buyers with lower credit scores to reduce their risk.

Want to put yourself in the best position? Here’s how you can boost your credit score before applying for auto financing:

• Pay your bills on time (even minimum payments matter)
• Reduce your credit card balances
• Avoid opening new accounts right before car shopping
• Check your credit report for errors (and dispute any mistakes)

At Dream Work Automotive, we believe everyone deserves a great car — no matter their credit situation.

✅ We work with multiple lenders to find financing options for all credit profiles

✅ We offer flexible down payment plans

✅ We help you understand your options with no judgment