How to Improve Your Credit Score

Is your credit score causing you problems in securing a credit card or car loan? When you need help figuring out how to get a better credit score, the team at AutoSavvy is here to help. Explore our tips to increase your credit score, and feel free to contact our finance department at 833-344-0751 if you have any questions.

How to Boost Your Credit Score

When you apply for financing, your credit score is one of the main factors lenders consider. If you’re trying to figure out how to boost your credit score like other Florida and Texas drivers, don’t worry! We have a few suggestions that can help you reach your goal:

Check Your Credit Reports

Beyond a bigger issue like identity theft, mistakes do happen and can impact your credit score. Before you start looking for ways to raise your credit score, make sure your reports are as factual as possible by obtaining one from all three major credit bureaus: Experian, Equifax, and TransUnion. The Fair Credit Reporting Act entitles you to one free copy a year, which 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. Two determining credit score factors are:

• 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 can help establish credit, assuming you keep under the 30% balance and pay your bill on time every month. 

If you’re wondering how to boost your credit score quickly, one way is to pick a recurring monthly charge and have it paid with your credit card. 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 

If you’re wondering how to get a better credit score, note that credit 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. As long as they have paid their bills on time that will begin to reflect well on you. 

Minimize New Credit Applications

This is one of our most important tips to increase your credit score. While we discussed a new card or loan as one of the ways to raise your credit score, you will want to be judicious when applying for new cards or loans. When lenders do a hard inquiry of your credit, that can impact your score for up to a year. 

Discover More Ways to Raise Your Credit Score at AutoSavvy

Looking for additional advice or help on how to get a better credit score? For more tips to increase credit score, contact the finance center at AutoSavvy. Our credit experts at any of our nationwide locations can walk you through the process and answer any additional questions.