Credit plays a big part in whether you qualify for an auto loan and the payments and loan terms banks will offer you, so it’s important to know what factors influence your credit score.
About a third of your credit score depends on your payment history. If you make your payments on time regularly, including mortgages, utility bills, and credit cards, your credit score will be much higher than if you miss payments or make them after they’re due.
How much debt you have has about the same impact as payment history. If you have significant credit card and loan debt, it’s much harder to get a new loan than if you have very little debt. It helps your score to have different types of credit as well, which shows you can reliably pay different types of payments.
Your credit score also depends on how long you’ve had credit, especially specific lines of credit. Having one credit card for a long time makes you look more reliable to banks. On the other hand, having lots of new credit is harmful to your score.