How to Boost Your Credit Score

Your credit score has a direct impact on your ability to secure a car loan. Often, you hear about ‘bad credit’ and what causes it, but what you need to know is how to get a better credit score. DeNooyer Chevrolet is here to discuss tips to increase your credit score, boost it, and get a better overall score. If you have more questions related to the topic of “how to boost my credit score,”, our financing team can help you further.

Check Your Credit Reports

Many things can impact your credit score over time and the most important thing is making sure the information on your credit report is accurate. Get a credit report from one of the major credit bureaus: Experian, Equifax, and TransUnion. Under the Fair Credit Reporting Act, you can get one free copy per year at AnnualCreditReport.com.

Assess Your Debts

Make sure you’ve kept track of all your existing debts and bills as this can determine what has the most impact. Two major factors for credit scores are:

• Your Debt to Credit Ratio: The amount of credit you have vs. how much you’ve charged. You want to keep any credit card charges under 30% of the available balance per month.
• Number of Cards With Balances: If you have more cards with balances, your score may be lower.

Create a Payment Plan

Deal with your outstanding debts via a repayment plan. Tackle any collection debts and small card balances first, then deal with larger debts long-term.

Open a Credit Card

If you’ve never had a credit card or loan before, your credit history won’t look as well-established to lenders. Opening a card at a Galesburg-area bank can help establish credit over time. Just make sure you keep the charges under 30% of the credit limit and pay your bill on time every month.

Build a Credit History

All credit scores are built up over time. If this is the start of your credit history, you might be able to become a user on a close family member’s existing account. Provided they paid their bills on time, this can greatly benefit you if you’re trying to secure a car loan.

Minimize New Credit Applications

Always be careful when applying for new cards or loans, as issues with these can directly affect long-term scores. Many lenders will do a full inquiry into your credit history going back several years. Hard credit inquiries can have an impact on your score. 

Find Out More Ways to Raise Credit Score at DeNooyer Chevrolet

If you want more advice on fixing your credit score, DeNooyer Chevrolet can help. Call us today or contact us online to speak with one of your staff members. We have an car buying tips hub right here on our website dedicated to car tips on a variety of topics. Find your ideal car with DeNooyer Chevrolet today!