What does a negative credit score imply for financing options?

A negative credit score typically indicates a history of financial irresponsibility or difficulty in managing credit, such as missed payments, high credit utilization, or defaults. This can significantly impact a borrower's ability to secure financing for a vehicle. Lenders use credit scores as a key factor in evaluating the risk of lending money; thus, a lower score often leads to limited financing options.

Since a negative credit score suggests that the borrower may be at a higher risk of defaulting on a loan, lenders might either deny the loan application altogether or approve it with higher interest rates to offset the risk they take on. Higher interest rates mean that the borrower will pay more over the life of the loan, making the financing more expensive. Therefore, the correct answer reflects the reality that a negative credit score can severely limit financing options or lead to less favorable borrowing terms.