Posted: Thursday, September 27th, 2018
The way credit scores are calculated can be complicated, so it should not be surprising that you could harm your score by simply not being aware of the intricacies of the credit rating process. Here at Green Light Auto Credit we’d like to point out a few things that you should avoid if you’re looking to improve or maintain your credit rating.
- Pay Off Your Balance: It’s commonly believed that carrying a balance will improve your credit score. This is a myth. A large balance on a credit card or revolving account will hurt your score. Try to do whatever you can pay off the balance.
- Don’t Max-Out Credit Cards to Get Rewards: Charging a lot to get credit card rewards is a bad idea. Using less of your credit limit, while keeping up with payments to lower your balance, will help your credit rating.
- Closing Accounts Doesn’t Help: Many think that closing multiple credit accounts will improve their score. But reducing the amount of credit available to you will negatively impact your rating.
- Don’t Overdraft Your Checking Account: Though there isn’t a direct correlation, overdrafting can affect your credit in the long-term by leading to bounced checks, delinquent payments, and more.
How to Improve Your Credit Score
- Taking out an auto loan can improve your credit score. By securing a good interest rate up front, and keeping up to date with your monthly payments, you’ll steadily boost your credit rating.
- Make sure to periodically check your credit score to ensure that the information is correct.
- The experts at Green Light Auto Credit can help you understand credit report basics and put you on the road to financial health.
Find the Car Loan You Need Today
Green Light Auto Credit specializes in providing car loans to those with bad or no credit, or who are living on a fixed income. Learning how to reduce your debt will also help you to maintain a good credit rating. Take a look at what our customers are saying, and apply to a car loan today. Our finance professionals are happy to answer any questions you may have so contact us online or call us at (800) 200-5551.
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