Few things are more exciting than shopping around for a new car. However, if your credit score is not as strong as you want it to be, then it could cost you more money in the long run if you’re forced to accept less favorable financing rates.
Fortunately, you don’t have to wait years to make improvements. Instead, with a little preparation, you can increase your score and bargaining position before you go shopping for your used vehicle. Here some tips that can help you improve that credit score before you shop for a used car.
Check Your Credit Report and Dispute Errors
The first step is to know where you stand. Request a copy of your credit report from each of the three major credit bureaus. Once you receive them, take a look at it carefully to make sure no mistakes have been made. If you find errors, dispute them immediately, as even something that may seem minute can have an impact on your rating.
Pay Down Debt and Keep Balances Low
Your credit utilization ratio, which is the amount of credit you’re using compared to your total limit, makes up a significant portion of your score. Try to pay down high balances, starting with credit cards that are near their limit. Even reducing your balance by a few hundred dollars can improve your ratio and raise your score. Moving forward, try your best to set a goal of keeping credit card balances below 30% of your total available credit.
Make Payments on Time
Payment history is the single most important factor in your credit score. If you’ve missed payments in the past, start building a streak of on-time payments now. Setting up automatic payments or reminders can help ensure you never miss a due date. Even a few consistent months can make a difference when applying for used car financing.
443 Auto Sales works with customers with a wide range of credit scores. We always want to make sure we do whatever we can to help our customers drive away with the car they want, which is why we offer flexible financing options, including our “buy here, pay here” program.
Stop by our Lehighton dealership today or give us a call at 570-386-0443 to learn more about our inventory and financing options.
