How to Get a Better Credit Score
Tired of letting a bad credit score or a lack of credit hold you back from securing an auto loan for your new vehicle in St. Louis? The team of professionals at Green Light Auto Credit is here to help you learn how to get a better credit score! Explore our best tips for ways to raise your credit score, below.
Check Your Credit Reports
Unfortunately, mistakes can make their way onto your credit report, impacting your score in a negative way. That’s why when looking into how to boost my credit score or ways to raise credit score, your first order of business should be to check your credit reports. Review them thoroughly to ensure everything is correct, and if you do spot a mistake, don’t hesitate to dispute it.
Did you know? The Fair Credit Reporting Act entitles you to one free copy of your credit report per year from each of the three main credit bureaus: Experian, Equifax, and TransUnion. You can request your report at AnnualCreditReport.com.
Review Your Debts
The next step to take is to list out all of your debts. This is the best way to get a handle on exactly how much you need to pay back. There are two main ways in which debt and your credit score are linked:
- Debt to credit ratio: This is your available credit vs. how much you charge each month. Preferably, you should limit your credit card charges to stay under 30 percent of your available monthly balance.
- Number of cards with a balance: How many credit cards do you own that have an outstanding balance? The more unpaid cards to your name, the lower your score will get.
Develop Your Payment Plan
Now that you’ve laid out your debts, how will you go about tackling them? Your repayment plan should address debts in collections, small balances on cards, and steadily paying down greater debts.
Apply for a Credit Card
If you’ve never taken out a loan or had a credit card, this could be the reason for your bad credit score. Start establishing credit by opening a card in Herculaneum. So long as you remain under the 30 percent balance and make on-time monthly payments, this is a great way to get started. If you’re worried about maintaining the right balance, you can use your card to pay off a single monthly recurring charge – just be sure to always have enough funds set aside to pay the card’s balance when you get the bill.
If you find that you’re unqualified for a standard credit card, there’s always the option of a secured card. These cards have small limits and typically only require about $200 as an initial cash deposit.
Build a Credit Age
Improving your credit takes time. So, if you’re only just getting started, one simple way is to have a family member add you as an authorized user on their account. Provided that they consistently make on-time payments, their good credit can have a positive impact on your own. But before you sign anything, make sure everyone is in agreement on how the bills will be handled and who is allowed to use the line of credit.
Don’t Submit Too Many Applications
It holds true that opening a new credit card or getting a loan can help build credit, but you should be mindful when applying. When you submit an official application, the lender will do a hard credit check, which can knock your score down just a bit. If you submit too many applications at once, however, the damage can be significant.
Get More Tips You Can Trust at Green Light Auto Credit
Have lingering questions about how to improve your credit? You can get more helpful tips to increase credit score from the friendly professionals at Green Light Auto Credit! Contact us or visit us near Florissant today for information on bad vs. no credit, how to secure a low interest rate, and more.