CMH JAC

Financing a Car? Your Credit Score Holds the Keys!

By

One of the biggest milestones in life is purchasing your first vehicle. It’s an exciting experience—but if you’re planning on financing it, your credit score plays a crucial role in determining your loan approval and interest rate.

In South Africa, most lenders require a credit score of at least 660 to qualify for vehicle finance. The higher your score, the better your chances of securing lower interest rates and favourable loan terms—because lenders will consider you a low-risk borrower. But don’t worry—if your score is below 660, you’re not entirely out of options.

What If My Credit Score Is Lower Than 660?

  • Increase your deposit: A larger down payment reduces the lender’s risk and increases your chances of approval.
  • Get a co-signer: Ask a trusted friend or family member with a strong credit score to co-sign your loan. This can boost your application’s credibility.
  • Improve your score first: Spend 6–12 months focusing on timely payments and reducing debt. A solid repayment history can significantly raise your score.

Besides Credit Score, What Else Do Lenders Look At?

  • Employment stability: Lenders prefer borrowers with steady income and long-term employment.
  • Payment history: Have you consistently paid your bills on time? This shows that you’re a responsible borrower.
  • Debt-to-income ratio: If your current debt outweighs your income, this can hurt your chances of approval.

How to Improve Your Credit Score

If your score isn’t quite where it should be, here are a few steps you can take:

  • Start building credit with a small-limit credit card or a cellphone contract—just make sure you pay it off in full and on time.
  • Avoid multiple loan applications. Only apply for credit when absolutely necessary.
  • Pay all your bills on time, every month.
  • Lower your credit card balances to reduce your debt load.

At the end of the day, getting vehicle finance depends on your affordability, your borrowing behaviour, and choosing the right lender. Looking to finance your next JAC? Contact us today—our team is ready to help get you behind the wheel.