Credit Score Factors

One of the most important factors to consider when purchasing a new car is your credit score. However, despite its importance, the elements that determine your credit score continue to be confusing for many people. In order to break through this confusion, we here at Whiteface Ford have decided to answer some frequently asked credit score questions.

Q: What helps determine credit score?

A: The factors that determine credit score can be divided into three main areas. These areas are your account information, public records, and any inquiries that are made by various lenders.

Q: How does having multiple credit cards affect my credit score?

A: The more important question to consider is how does having multiple credit cards with high balances affect my credit score? Having multiple credit cards alone will not make or break your credit score. However, possessing high balances on several credit cards will have a major negative effect.

Q: Will cosigning potentially affect my credit score?

A: When you agree to cosign for a purchase of any kind, you accept full responsibility if the other person does not cover the costs, which will have an impact on your credit score. Our advice would be to carefully consider before cosigning.

We hope these answers shine a little more light on the confusion surrounding credit scores and help you determine the health of your own credit score.