At Sansone Toyota, we’re delighted that 2020 is here. A new year means new inventory, new incentives, and our personal favorite—new customers! If you’re considering the purchase of a new Toyota Camry in Avenel, NJ, you’ve probably already started thinking about financing. After all, there’s lots to be aware of between interest rates, monthly payments, loan terms, and more.

The common thread among the many elements of an auto loan is one thing: your credit history. Whether you’re a first-time car buyer or a seasoned pro, we can all use a little refresher from time to time, so let’s take a moment today to review the three Cs of credit.

What are the three Cs of credit?

Each of these categories factors into your overall credit score, as well as your broader credit report. Toyota’s financial team reviews these factors to determine your creditworthiness.

Character. While this sounds a bit subjective on the surface, credit character refers to your reliability and honesty when it comes to making payments and managing available credit. Think about things like:

  • Have you used credit before? How many accounts do you have open?
  • Do you pay your bills in full and on time each month?
  • How long have you been with your current employer?

Capacity. Lenders want to feel confident that you’ll have the financial resources to repay your debt. Consider the following:

  • What is your monthly income?
  • Do you have other types of debt?
  • What are your living expenses?

Capital. This refers to, essentially, your potential collateral if money becomes unavailable. Lenders will consider your investments, savings, real estate, or other personal property of value.

Our experts are happy to review all of your options, whether your credit is excellent or up-and-coming. For more financing tips or to take the plunge into driving home in a new Toyota Camry, contact our Toyota financial department at Sansone Toyota in Avenel today!