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The
Basics
What is Credit?
Unless you're
paying cash for your Toyota upfront, another way to take one home is
to finance the cost of it through the dealership and make monthly
payments on it (financing or buying). Or, you can pay for the use of
the vehicle over time (leasing). We have a Buy vs. Lease matrix
featured in this section that can help explain the differences
between financing or leasing.
Much like every decision you
make, there are pros and cons to consider before you actually apply
for credit. So, let's begin.
The Benefits of
Good Credit
A good credit history can open
many doors. Many big-ticket transactions (like cars) are done on
credit. Using your credit to purchase or lease a car, purchase a new
home, or purchase anything else can be convenient, and in many cases
to your advantage. Credit is also commonly used to purchase everyday
items such as groceries and that new jacket you've had your eye
on.
The Costs
Credit is
convenient, but it's not free. When creditors grant you credit, they
give you financial flexibility. But there's a cost. Creditors charge
a fee for that financial flexibility. Every creditor has a different
way of charging you, too. So it's very important that you always
review all the documents given to you and the terms of your credit
before entering into an agreement with a
creditor.
Rate Your
Credit
Here's a guide to help determine your
credit rating:
| Rating |
Description |
| Excellent |
I have a long, established positive credit history. |
| Very Good |
I use my credit wisely and never miss a payment. |
| Good |
Been pretty responsible with my credit, but have a few
late payments. |
| Fair |
I should have paid closer attention to my credit and paid
my bills on time. |
| Poor |
I have credit issues. Big ones. |
| No Credit |
I don't have a credit history, but really want a
Toyota. |
Based on your answers, our
payment estimator will provide you with an estimate of the rate you
may receive through the dealership. However, these estimates
are all based on averages, and they can at best only give you a
ballpark figure. So while you'll have a good idea on how
much you'll be paying, keep in mind as you enter the dealership that
it's not the final word on your credit. Your Toyota dealer can help
you figure out a plan that's right for you.
If you didn't
rate very high on our credit test, don't give up just yet. The
benefit to financing or leasing a Toyota through your dealer and
Toyota Financial Services (TFS) is that we understand that not all
credit is perfect. We've designed specific programs for qualified
applicants with little or no credit experience. Check out our
finance and lease programs for more details. These programs are
available through your dealer and TFS.
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