Your credit score plays a major role in many financial decisions—especially when it comes to buying or leasing a vehicle. At Stanley Chevy, we’re committed to helping our customers in McCordsville, Noblesville, Anderson, Ingalls, Lapel, Mt. Comfort, Castleton, and the greater Indianapolis area make informed decisions. Whether you’re applying for auto financing or just want to improve your financial health, understanding what affects your credit score is essential.
In this blog, we’ll break down the major factors that affect your credit score and how you can take control of your financial future.
1. Payment History (35%)
Your payment history is the single most important factor in determining your credit score. Lenders want to see that you consistently pay your bills on time, including:
- Credit cards
- Auto loans
- Mortgages
- Student loans
Even one missed or late payment can have a significant negative impact on your score. Set up automatic payments or reminders to avoid accidentally missing due dates.
2. Credit Utilization (30%)
Credit utilization refers to the percentage of your available credit that you’re currently using. For example, if you have a credit card with a $10,000 limit and a balance of $3,000, your utilization rate is 30%.
To maintain a healthy score, aim to keep your credit utilization under 30% of your available credit. Paying down high balances can quickly improve your score.
3. Length of Credit History (15%)
The longer your credit history, the better. This factor considers:
- How long your accounts have been open
- The age of your oldest account
- The average age of all your accounts
If you’re just starting out, don’t worry. Keep accounts open and in good standing, and over time, your score will grow stronger.
4. Credit Mix (10%)
Lenders like to see a healthy mix of different types of credit, such as:
- Credit cards
- Auto loans
- Mortgages
- Installment loans
Having a variety of credit accounts (and managing them well) shows lenders that you can handle different types of financial responsibilities.
5. New Credit Inquiries (10%)
When you apply for new credit—such as an auto loan or credit card—a hard inquiry is recorded on your credit report. While a few inquiries won’t hurt, several in a short time frame may lower your score.
At Stanley Chevy, we work with a variety of lenders to help you secure financing without damaging your score. We aim to get you approved without unnecessary inquiries.
How to Build or Improve Your Credit Score
If you’re looking to raise your credit score, here are a few tips:
- Pay all bills on time
- Keep credit card balances low
- Avoid opening multiple accounts in a short time
- Check your credit report for errors
- Don’t close old accounts (as long as they’re in good standing)
Even small improvements in your credit score can lead to better loan terms, lower interest rates, and more purchasing power.
Stanley Chevy Can Help
At Stanley Chevy, we believe everyone deserves a reliable vehicle—regardless of their credit history. Whether you have excellent credit, bad credit, or are just starting out, our finance team is here to help you explore all your options.
We proudly serve McCordsville, Geist, Lapel, Anderson, Mt. Comfort, Castleton, and the greater Indianapolis area with affordable, flexible financing solutions.
Ready to Get Started?
Visit us today at Stanley Chevy in McCordsville or start your credit application online. Let us help you drive home in the vehicle of your dreams—with a payment plan that fits your budget.
Have questions? Call us at 317-335-3000 to speak with a member of our finance team.
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