Credit is the start of the journey

Drivers often choose to either finance or lease their vehicles. With multiple options available to you, it is important to understand what your contract entails and how it will affect your larger financial picture. Here you will find information to help build your credit knowledge, strengthen your financial future, and determine the payment plan that best fits your individual journey.¹

Credit at a Glance

Imagine that you want to purchase or lease a vehicle, but don't have the resources to pay for it all at once. For those in this situation, credit makes vehicle ownership possible. Credit allows customers to take possession of something, in our case a vehicle, before it is fully paid. A financial institution extends credit for the item, on the expectation that payment will be completed in the future. With credit through Mazda Financial Services, you can either finance (make monthly payments on an amount borrowed to pay for the purchase) or lease (pay for the use of a vehicle for a set period of time plus any lease charges).

Benefits of good credit

Your credit score can be used as an indication of the probability of making payments reliably and on time. The higher your credit score is, the more likely you are to earn the loan or lease you’re planning for.

Your credit score is based on:

• How long you have had credit
• How many different creditors you have
• How many open lines of credit you have
• Whether or not you make payments on time
• Too much or too little activity in your account
• The types of credit you have (e.g. credit cards, auto loans, mortgages, etc.)
  
• Your credit limit and how much of that limit you're using
  
• And a number of other factors
  

The costs of credit

Credit is convenient, but often it comes at a cost. Financial institutions and other creditors may charge a fee for letting you pay a little at a time for whatever you're financing or leasing. They'll collect those fees in different ways, from interest, to charges, to penalties, so it's crucial that you fully understand all the terms of any finance or lease contract.