Credit scores play a critical role in determining your ability to secure financing for assets like vehicles, equipment or machinery. Lenders use credit scores to assess the risk of lending to a borrower.
A higher credit score can open the door to more favourable financing terms, including lower interest rates and more flexible repayment options. Here’s why your credit score matters in asset financing:
- Lower interest rates
Borrowers with strong credit scores typically qualify for lower interest rates, reducing the overall cost of financing. - Improved loan approval chances
A good credit score increases the likelihood of loan approval, giving you access to better financing options. - More favourable terms
Lenders are more likely to offer flexible loan terms—such as longer repayment periods—if your credit history is solid.
Maintaining a strong credit score helps ensure you secure the best deals when financing assets, ultimately saving you money