How to Get a Better Credit Score

At Gunter CDJR Martinsville we understand that not every Martinsville driver has perfect credit. Having less than stellar credit can present challenges as you attempt to obtain fair car loans. Aided by our team, you can learn how to get a better credit score so you can become more fiscally savvy. With our tips to increase credit score, you will be on the path to stronger buying power in no time! If you are searching, “how to boost my credit score” follow our guide below to get started!

Check Your Credit Reports

Identity theft is a serious issue and can have ramifications on your credit score. Taking measures to protect yourself from such threats is prudent. However, reporting errors on your credit report may be more likely to occur than identity theft.

As you begin your journey of learning how to get a better credit score, double-checking your credit reports is a great place to start. The Fair Credit Reporting Act enables you to obtain one free credit report each year, which can be accessed at AnnualCreditReport.com. Additionally, checking your score with the three major credit bureaus (Experian, Equifax, and TransUnion) can allow you to spot errors and can be an easy way to raise your credit score.

Assess Your Debts

Determining what you owe is crucial in learning ways to raise your credit score. Getting organized enables you to set a trajectory of when you can be free of debt and may even allow you to set a budget for a brand new vehicle down the line. Two factors to note when looking at your debt include:

• Your debt to credit ratio: This indicator of financial health is determined by looking at your available credit vs. what you have charged. A good rule of thumb is to shoot for keeping your charges under 30% of your available budget each month.
• Number of cards with balances: A wallet full of credit cards carrying even minor balances can have a major negative impact on your credit score.

Create a Payment Plan

At Gunter CDJR Martinsville we work with customers on a daily basis who are seeking the answer to, “how to boost my credit score.” A simple tip to increase your credit score is to establish a payment plan. Our finance team can help you set up realistic expectations so you can budget appropriately. We will help you set up a well-rounded approach to reducing debt by helping you plan to pay off any debt in collections, clear cards with small balances, and begin the process of paying off larger debts.

Open a Credit Card

When asking, “how to boost my credit score,” it may be surprising to hear that for some Danville drivers, opening a credit card is the best solution. If you are trying to take to the Reidsville, NC streets in a new ride, a lack of credit history may be a roadblock. You should follow our tips to increase credit score when opening a new credit line. A great way to raise your credit score from the start is to pick a recurring bill to pay with your new credit card. Be sure to set aside enough money each month to cover this bill and sign up for autopay if possible.

For some, acquiring a regular credit card may not be possible. One solution is to apply for a secured credit card. While this type of card will have a lower credit limit and may require a payment upfront, it can be a stepping stone to strong credit.

Build a Credit Age

A great way to raise your credit score quickly is to become a user on a family member’s account. As it takes time to build strong credit, teaming up with a responsible family member can inject new life into your credit score. Be sure to pick a responsible borrower and establish clear guidelines as to who has access to the credit before making this type of agreement.

Minimize New Credit Applications

While it can be good to open new cards as a means of building a credit history, carefully selecting the cards you apply for is critical. Applying for a credit card will create a hard inquiry from a lender which could be detrimental to your credit score for up to a year.

Find Out More Ways to Raise Credit Score at Gunter CDJR Martinsville

If you are looking for more tips to increase your credit score, contact us today! Our financial experts can help you assess your situation and formulate a plan to boost your credit score. Visit our dealership in Ridgeway to sit down with one of our friendly finance staff members and learn how to improve your credit score today!