How To Improve Your Credit Score
HOW TO IMPROVE YOUR CREDIT SCORE
Are you looking for tips on how to improve your credit score in the hopes of financing a car? The finance center at Power Mazda is here to help! With the following tips, Portland drivers should be able to raise their credit scores, while not only obtaining auto loans, but also receiving lower interest rates and monthly payments. You’ll be cruising the Wilsonville streets in a new Mazda for sale at Power Mazda in no time!
TIPS TO INCREASE CREDIT SCORE
The following tips to increase credit scores should help potential car-buyers:
- Check your credit report.
- Assess your debts.
- Create a payment plan.
- Open a credit card.
- Build a credit age.
- Minimize new credit applications.
This list may seem intimidating, but details about them below should show you how to boost your credit score.
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WAYS TO RAISE CREDIT SCORE
Ultimately, if you don’t have an intimate knowledge of your credit score itself, how it got to where it is, and what actions affect it, it’s difficult to raise your credit score. These detailed tips should help Eugene drivers fix their credit situations.
- Check Your Credit Reports
- Mistakes can happen to your credit score. The first step to improving your score is checking with the three major credit bureaus—Experian, Equifax, and TransUnion—to ensure everything is accurate. The Fair Credit Reporting Act entitles you to one free copy of your credit report a year that you can access at AnnualCreditReport.com.
- Assess Your Debts
- List out all of your debts so you can get a handle on what exactly you owe. Your debt-to-credit ratio and number of credit cards are important to understand.
- Your debt to credit ratio: How much available credit you have vs. how much you have actually charged. Ideally, you want to keep your credit card charges under 30% of the available balance every month.
- Number of cards with balances: The more cards with balances, the lower your score.
- Create a Payment Plan
- Attack your debts with a repayment plan that includes tackling debts in collections, eliminating small balances on cards, and working to pay down larger debts.
- Open a Credit Card
- Your credit score could also be low because you simply have never had a loan or credit card before. Opening a card in Keizer can help establish credit, as long as you keep under the 30% balance and pay your bill on time every month.
- If you don’t qualify for a regular credit card, consider a secured credit card. This type of card has a small limit and usually requires an initial deposit of up to a couple hundred dollars to open.
- Build a Credit Age
- Your credit score is built over time. If you are starting today, one way to improve or add to your history is to become a user on a family member’s account.
- Minimize New Credit Applications
- While we discussed a new card or loan as one of the ways to improve your credit score, you will want to be judicious in applying for new cards or loans.
FIND OUT MORE WAYS TO RAISE CREDIT SCORE AT POWER MAZDA
Remember: if you do open new lines of credit to improve your score, make sure to make timely payments and keep your credit card balances low. Otherwise, if you need any more advice on how to get a better credit score, whether to lease or finance a new Mazda, or how to trade in a financed car, reach out to the Power Mazda finance center!
From your credit, to changing a car battery, we’re here to teach our customers about every facet of car ownership.