Steps you can take to improve your credit score for a car loan
Credit scores are basically adult GPAs; not only do they measure how well you manage your finances, but they also serve as an effective barometer of your trustworthiness as it relates to paying loans and accounts on time. That’s why it’s so important to have a score ranging from “Good” to “Excellent” if you want the best price possible for your next vehicle. So, we want to help you out – join Carville’s Auto Mart today as we present you with some helpful steps you can take to improve your credit score for a car loan!
Keep Revolving Utilization Low
Let’s say that one of your current credit cards has a total line of $5,000; though it may be tempting to treat all that money as yours immediately, don’t charge too many things to your card all at once. Revolving utilization is the percentage of your total credit line that has been used in a statement cycle, and if it’s over 25-30%, monitoring companies may take this as a sign that your spending habits aren’t up to snuff.
Don’t Open Too Many Accounts
Every time you apply for or open a credit card, the issuing company will submit an inquiry into your credit history and track record of repayment. Every time an inquiry is issued, you’ll see your score temporarily lowered; though it will generally bounce back, don’t make a habit of applying for too many new credit accounts. This can be taken as a sign that you’re getting yourself into trouble with one already.
Pay Bills and Balances on Time
Probably the biggest harm that can be caused to your credit score is missed payments on bills and loans that you owe. Though electric bills, student loans and your credit statements can all pose a threat to your bank account, it’s still best to do everything in your power to pay them off promptly. This way, credit monitoring firms will see that you’re a trustworthy lender, which is an essential trait when you sign off on a vehicle.
More Financial Tips: What credit score should you have to finance a used car?
Get Credit Approval for a Used Vehicle in Grand Junction CO
When it comes to getting a good deal on a used model, a higher credit score is always better. However, no matter what your situation might be, we can help you get inside a high-quality used vehicle right here at Carville’s Auto Mart. Feel free to browse our inventory and give us a call if you’d like to sign off on any model that we offer!