credit tips

How to Improve Your Credit Score

If your credit score is low, don't worry.  You can still increase your score with time, but be ready to do some work. There's no quick fix for bad credit, but you can rebuild it over a period of time. The following tips will set you on the path towards good credit and a better future.

Pay your bills on time

This seems like an obvious point, but it's important to note that the largest impact to your credit score is your payment history. Up to 35% of your score is based of off this one factor.

Behind on payments? Talk to your lender

If you usually pay on time and miss a payment, request that the lender forgive the late payment. Often times, they will do so willingly. If you've missed several payments, call your lender immediately.  Do not wait for the loan to go to collections.  Instead, arrange a payment schedule that will allow you to catch up. The longer you pay your bills on time after missing a payment, the more your credit score will increase. The impact of past credit problems decreases over time as you continue to pay and a good payment pattern show up on your credit report.

Keep your balance low

Your credit utilization ratio impacts 30% of your overall credit score. The best way to use your credit card is to pay off exactly what you spend on it every month thereby keeping your balance at zero. One common misconception people believe is that you have to carry a balance to improve your credit score.  What really matters is your available credit to usage ratio, or in other words, the difference between your balance and your limit. Lenders want to see that you have credit available to you that you are not using.

Already have credit debt that you are paying on?

If you have been paying the minimum payment for a decent amount of time, your lenders probably love you. A great way to get your utilization ratio down is to ask your credit card company to increase your credit limit. Most times if you were a good payer who just has a high balance, they will certainly say yes. However, if this will cause you to spend more on your card, avoid this solution. 

Stop Checking your Credit Score

Another factor determining your credit score is the number of inquiries. Many people wrongly assume they need to frequently check their credit score to "stay on top things;" however, this is not true.  In fact, a major factor in determining your credit score is how many times your credit has been checked whether by lenders or others. The more instances of your credit score being checked, the more it hurts your credit. Checking too often makes you look "desperate for a loan" and not financially secure.

How can I check my credit without hurting it?

A great way to keep track of your credit score is with free apps like Credit Karma. Note that this will not be your exact accurate score, but will give you a rough average where your credit score should be based on the same factors the credit bureaus use

Keep Good Accounts Open

People think closing credit accounts actually helps there score, it does not. Another factor of your score is the length of credit history. Opening up new loans actually hurts this age of credit, as does closing accounts. Acquire one credit card, and plan on using this card and not closing it or re-opening a new one. Lenders want to see that you stay with a line of credit for a long time. See? Those student loans did help you after all..

Contact Us to Get Financed For a Car Today

true true true true true true true true true true
{09:00-19:00=[Tu, Mo, Th, Fr, We], 09:00-17:00=[Sa]}