How to Improve Your Credit Score 

Tips to Increase Credit Score: Check Your Credit Reports

If you’re looking to purchase a new car near Dayton, it’s important to get your credit in check. The first thing you should do is consult your credit reports, since information is power. This is a great place to start for those wondering, “How to boost my credit score?” or “What are some ways to raise credit scores?” Credit bureaus are not perfect. They make mistakes, and those mistakes might weigh you down. Make sure your reports are as accurate and factual as possible by obtaining not just one, but three reports from the major credit bureaus: Experian, Equifax, and TransUnion. Thankfully, the Fair Credit Reporting Act entitles you to one free copy of your credit report a year. You can access your free report at AnnualCreditReport.com.

Tips to Increase Credit Score: Assess Your Debts

Know exactly what you owe and to whom. Do this by making a list of all of your debts—that should give you a better view of your financial situation. As you do this, consider these two factors that affect your credit score:

• Your debt-to-credit ratio: This is the amount of credit you have available to you vs. the amount you’ve actually charged. You want to keep the amount of charges to credit cards under 30 percent of the available balance.
• Number of cards with balances: Having too many cards can in fact hurt you. More cards with balances will lower your score. 

Tips to Increase Credit Score: Create a Payment Plan

Once you understand your credit score and complete debt landscape, you can plan your attack. Address debts in collections, eliminate small balances on cards, and work toward paying down large debts.

Tips to Increase Credit Score: Open a Credit Card

If you don’t have debt but have a low credit score, then your lack of credit history may be to blame. This has an easy solution: open a new card. With an introductory card, you can charge small things on it around Springfield. Responsibly using this card, paying your bill on time every month, and making sure to keep the balance below 30 percent are all priorities. Some people will have one monthly recurring charge applied to their credit card, paying off the balance after the card is charged.

Even if you don’t qualify for a credit card, there are secured credit cards available. These cards have small limits and may require an initial deposit of up to a couple hundred dollars.

Tips to Increase Credit Score: Build a Credit Age 

Improving your credit to obtain auto loans can take time, since credit history is an important factor—the longer your payment history, the better your score will likely be. With that said, one way to improve your score is to get added to a family member’s account. As long as they’ve paid their bills on time, hopping on their account will reflect well on you. Talk through any agreements you make with a family member thoroughly before moving forward, making sure everyone agrees to the same terms, how the card is used, and how payments will be made.

Tips to Increase Credit Score: Minimize New Credit Applications

Apply to new credit cards responsibly. Unfortunately for those building new credit, too many credit applications can actually hurt your score. This is due to lenders conducting hard inquiries on your credit, and that can impact your score for up to a year. Apply for cards you think you can potentially get approved for with terms that seem agreeable.

Find Out More Ways to Raise Your Credit Score at New Carlisle Chrysler Jeep Dodge Ram

For more tips to increase credit scores, reach out to the New Carlisle Chrysler Jeep Dodge Ram finance center! And when you feel it’s time to apply for a car loan, apply easily on our website. You can also value your trade, in case you have an old vehicle to trade in to make your new Chrysler, Dodge, Jeep, Ram, Wagoneer even more affordable!