How to Get a Better Credit Score

While many dealerships offer bad credit car loans, drivers are often limited on the models available or face costly additional fees. If you’re looking for more favorable loan terms, it’s ideal to look into ways to raise your credit score. Our team at Merced AR is here to help with tips on how to get a better credit score. When it’s time to upgrade your Merced commutes, learn about what credit score is needed to finance a car and bad credit financing. 

Know What is on Your Credit Report

When you’re searching “how to boost my credit score,” you should first know what is on your credit report. While identity theft has a major impact on your credit, smaller mistakes can add up and impact your overall credit score. Make sure all the items on your credit report are as factual as possible by obtaining your report from the three major credit bureaus: Experian, Equifax, and TransUnion. You’re entitled to one free copy of your credit report each year. Visit AnnualCreditReport.com. 

Manage Your Debts

Create a list of your active debts to understand exactly how much you owe. To understand how to raise your credit score, learn about how debt factors in:

• Your debt to credit ratio: Your credit score factors in how much debt you have vs. how much available credit there is. It’s recommended that your credit card charge be under at least 30% of your available balance each month.
• Number of cards with balances: While you can have multiple credit cards, your credit score reflects the number of cards with balances on them. The more cards with balances,  the lower your score. 

Once you’re aware of the debts in collections and the total balances. Create a repayment plan that focuses on eliminating smaller balances and making a dent in larger debts. 

Establish a Line of Credit

It may be the case that your credit score is low because of a lack of credit. Opening a credit card for your purchases around Los Banos can help build your credit score as long as you stay under 30% usage and you make payments on time. One tip for increasing your credit score is to select a recurring charge like a car payment or phone bill and have it charged to your credit card. Be sure to already have the money set aside so you can pay off your credit card bill when the statement arrives. 

If you’re not able to qualify for a standard credit card, secure credit cards are available for people with low credit. They only have a small limit and require a few hundred dollars deposit to open. 

Build a Credit Age

While these tips can help you boost your credit score, credit is something that builds over time. You can “borrow” a family member’s good credit age to help boost your score. If they have a history of on-time payments and you’re able to become a user on their account, their good habits can reflect well on your credit. However, it’s recommended that you establish who gets to use the line of credit and how payment will be handled before signing an agreement. 

Minimize New Credit Applications

Researching ways to raise your credit score should include looking into hard and soft credit pulls. For example, pre-qualifying for a car loan allows dealers to check your credit without affecting your credit score. When lenders do a hard pull to determine loan amounts, they can end up impacting your credit score for up to a year. 

Learn About Used Car Credit Financing at Merced AR!

Now that you know a few tips on how to get a better credit score, browse our inventory of used cars at Merced AR to upgrade your Atwater commutes. If you need help determining your used car credit options, calculate your monthly car payments and discuss financing options with our knowledgeable finance center.