Credit! All you ever wanted to know. And some.

Hello all!


Today I want to tackle the ever sensitive topic of credit. In my work place, credit plays a day to day role in what we do. Whether it means pulling credit to finalize a deal, or searching rate to remain competitive, or working with new credit, bad credit, or no credit, credit in some property, comes in to play. I find the longer that I am exposed to new credit situations and the more I see the same scenario replay over and over, the more I realize how intimidating and how misunderstood credit can be .

For the purpose of this post I will be splitting it up into three parts: 1. Credit Scenarios. 2. Role of credit as it attains to a car purchase 3. Smart ways to view/benefit from credit usage.

  1. Credit Scenarios

    1. Tough Credit

      1. It happens. No, seriously, it happens. We see so many of these scenarios. 9/10 it is due to unavoidable circumstances like medical debt or divorce. Some of us have very real working knowledge of it due to personal circumstances as well. The biggest issue I find with tough credit is not getting the right car, it’s not getting a bank to approve you, it’s not even payment or downpayment related; it’s getting you to have the confidence to give us a shot. No one is a miracle worker that is never a guarantee but we work really hard to meet every client exactly where they are at and help set you up for success… not crippling circumstances. This means that you actually can feel safe and secure coming to us, having a transparent conversation, and know that we will work just as hard if you have a 500 credit score as we will someone with a 750.

    2. No Credit

      1. No credit is an interesting place to be in the car world. Most finance options require credit or a cosigner with credit. Some vehicles cannot be financed without it. However, I typically find that the no credit customers are at great risk of moving into the tough credit realm by being sucked into a “no credit needed” financing option. These transactions offered by certain establishments are really difficult to come out of ahead. Often times they loan you the money through their own bank at an extremely high rate and tend to overprice their products. The flip side? Many dealers, ours included, have programs that will work with you in getting you into a new car at the same price as anyone else and at a low rate so long as you can prove income.  Each of these programs do not apply to everyone but we have options to choose from and  will offer assistance as to a “best course” of action if needed so you can be the one who decides.

    3. Average Credit

      1. 50% of the people who walk through our doors have what I like to call average credit. This means that we have a lot going for us! The best way to shop is to be transparent. Is payment a really big deal for you? Let us know so we can help suggest bank options or vehicles that will secure that. Is credit rate important? Great! Let us help you navigate that scene by showing you your best choices from the over 50 banks and credit unions that are contracted with us. Or, you can shop yourself and we can help you utilize that bank easily and efficiently. Or if down payment is your biggest concern, we use so many options that will alleviate that need, you will be impressed!

    4. Excellent Credit

      1. Congratulations!! You’re way above average. Generally you don’t need any advice from me as to how to keep your score top notch. You understand the inner workings and have worked diligently to maintain your status. My biggest advice (aside from keep it up!) is even if you have approval elsewhere, listen to what options the dealer may be able to apply for. Sometimes we are incentivized with lower rates or different term options than you can get going into you own bank.

  2. Credit in the dealership

    1. 0% offers

      1. A lot of dealerships, Hyundai included, often times have 0% offers on new cars. These can absolutely work to your advantage as they are literally offering a free loan (free money!!). However, it is important to understand that sometimes this cannot be combined with other rebates or offers so definitely make sure to have that conversation with your sales consultant. What I typically find is that it really depends on what type of buyer you are. Sometimes it makes sense to go with 0% even if the monthly payment is more if you prefer not making a down payment or if you invest. Other times, the rebates are excellent at just a bit higher rate, but if you pay the loan early, no harm no foul.  

    2. Constantly changing

      1. Banks and dealerships and mortgage consultants are not lying when they say rates change. They absolutely do. Every day. Typically this does not affect the average buyer to heavily but just because you got a 2.99% rate this year doesn’t mean next year it won’t go down… or up. Shop rates for the best fit for your credit profile (tough, no credit, average, and excellent) or better yet, let us do the leg work for you.

    3. Used vs New

      1. Believe it or not rate does change on new VS used cars. Many banks downright won’t accept a loan on a used vehicle unless you have mid to high credit range. Others will work with you but for a price. For the bank, it makes fiscal and logical sense to loan money on a vehicle that is new due to the reality that during the life of the loan, you will have fewer issues (like a transmission going out) that make create an inability to pay the payment. That being said, if you only shop used, think of possibly switching to new for the better rate… and newer, better warrantied, up to date model!

  3. Smart ways to use/view credit

    1. Not Scary

      1. Credit feels scary. Most people do not understand it and it feels like it could make or break you. Finding a dealership you trust is of paramount importance so that you can leave with the right car, the right payment, and the knowledge that you were given the best service when it comes to managing your credit.

    2. Asset

      1. Credit is a HUGE liability or a HUGE asset. Do as much research as necessary to make sure that you find how you can make it the latter. Work with your sales consultant to make the best financial decision. Buying a car at 3.9% sounds intimidating, but keep in mind , using a credit card for purchase or down payment may be costing you upwards of 20% interest. Cheap loans can be used to capitalize on keeping your cash and using it to work for you.

    3. Transparent

      1. Like I have said throughout, all of us have some sort of credit standing. Here at Crossroads we work with all types, the more open you are, the better we are able to help assist you in getting you information and options so YOU can make the right decision for you and your family.


All in all, we are here to work for you, not against you. Here at Crossroads Hyundai we are committed to doing the right thing for you. We want these conversations and we want you to leave happy, educated, and in the perfect car for you.



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