How to Get a Better Credit Score: Tips & Tricks

Looking to invest in a new or pre-owned car for your Conway commutes? That’s great! However, if you find that your credit score isn’t the greatest, you should aim to raise your credit score before you go ahead and apply for auto-financing. Having a poor credit score makes it more difficult to secure low interest rates on loans. So now you’re probably asking yourself as you read this article, “What are some ways to raise a credit score?” Read on with the Myrtle Beach Chrysler Jeep finance team to learn tips to increase credit score and how to boost a credit score.

Tips to Increase Credit Score

What is a good credit score to get a lower interest rate on an auto-rate. While a credit score of 670 is considered the minimum “good score,” most lenders prefer that you have a credit score of at least 700. Below are some ways to raise a credit score:

• Review your credit reports: You may have some errors on your credit score that you may not even know about, and these can impact your ability to get auto financing. That’s why you should request a credit report to go over and find any potential errors and to dispute them. According to the Fair Credit Reporting Act, North Myrtle Beach residents can receive one free copy of their credit report each year. You can access this at AnnualCreditReport.com.
• Analyze what you owe, then make a plan to pay it off. Don’t know how much debt you have? You should probably find out. Your debt-to credit ratio can negatively impact your credit score, which is the amount of credit you currently have vs. the amount of credit charges you still haven’t paid off. So if you have outstanding balances on credit cards, make it a goal to pay them off before you apply for auto financing in the Surfside Beach area
• Establish a credit age. Your credit score is built over time. One of the easiest ways to boost your credit score is by becoming a user on a family member’s account, more specifically, a family member with a good credit history. Just note that if you or your family member fails to make payments on time, both of your credit scores will be negatively impacted.
• Limit your credit applications. Applying to too many credit cards can lower your credit score. This is because lenders will be more wary to give you a loan with lower interest rates, or they may just completely reject your application.
• If you have no credit history, it’s time to start building. One great way to start off is by getting a secured credit card. These are easy to get approved for, but you have to put down a payment, which serves as your credit line. If you make payments on time and stay on top of your balances, you’ll eventually get your down payment back. Make it a mission to keep your utilization under 30%, or just pay your balance off ASAP. 

Play the Game of Credit Right with Myrtle Beach Chrysler Jeep

To put it simply, credit is like a game, but with real life consequences. If you play it right, you can reap the benefits. For more tips and tricks like this, check out more of our finance and car buying tips. For any questions related to financing or how to boost a credit score, contact us online, or stop by Myrtle Beach Chrysler Jeep in Myrtle Beach to speak with a finance representative in person.