Is your credit score not in the place you want it to be? Are you wondering to yourself, “How to boost my credit score?” If you aren’t able to secure a car loan because of your credit score, there are actually a number of tips to increase credit score numbers that the financial experts here at Cornerstone Plymouth want to share with you! Find out the ways to raise credit score numbers below with our help.
Tips to Increase Credit Score: Check Your Credit Reports
Although most people are likely worried about credit issues that involve major identity theft, your credit score could also be affected by wrong credit reports. A quick and easy way to increase your credit score is to take a deep look at your credit report and ensure that it is accurate. To best do this, you should obtain a credit report from Transunion, Experian, and Equifax, who are the three major credit bureaus. And, you can get one free copy every year from AnnualCreditReport.com, thanks to the Fair Credit Reporting Act.
Tips to Increase Credit Score: Assess Your Debts
Another one of the ways to raise credit score numbers is to really understand the debts you currently have. It’s important to list your current debts and pay particular attention to the following two aspects:
- Debt to credit ratio: This is the ratio of how much credit you’re allowed to use vs. how much you’ve actually charged. Yes, this can negatively affect your credit score. If you want to improve your credit score, then you will want to keep your credit card charges below 30% of what your total monthly balance is.
- The number of cards with balances: Something that could lead to a lower credit score is if you have a bunch of credit cards, each with its own active balance. To increase your score, it’s best to have fewer cards with active balances.
Tips to Increase Credit Score: Create a Payment Plan
If you really want to raise your credit score, then you will have to begin repaying your debts and getting rid of them completely. One way to efficiently do that is to create a payment plan and work on paying off large debts, trying to pay off debts in collections rather than smaller increments, and completely eliminating smaller balances on any cards you have.
Tips to Increase Credit Score: Open a Credit Card
You may not realize it, but a reason as to why you could have a low credit score is because you may not even have ever had an open credit card account or received a loan before. Try to apply and open a credit card, but also take the advice we gave above and try to keep your balance below 30% of what’s allowed to you. You will also want to pay off your balance every month on time. Doing this will build your credit in a positive way. If you are having trouble qualifying for a regular credit card, another thing to consider is a secured credit card, which typically requires a deposit and allows for a smaller credit limit, but it’s a place to start.
Tips to Increase Credit Score: Build a Credit Age
If you’re starting to build your credit today for the first time, then you could try and become a user on a family member’s credit account. Doing this could build your credit as long as the credit partner has a good score and pays their bills on time.
Tips to Increase Credit Score: Minimize new Credit Applications
Although we have insisted that you apply for a new credit card, especially if you’ve never had one before, it is important to not apply for too many. Potential lenders can see how many you’ve applied for, and this could have a negative impact on your credit score for as long as a year’s time.
Get More Financial Help in Plymouth at Cornerstone Plymouth
Once you improve your credit score, your chances of getting a loan or car financing multiplies! So, are you interested in learning more ways to raise credit score numbers? Be sure to contact us and talk to one of our helpful staff members in the finance department today. Otherwise, you can always take a trip to our Plymouth dealership, which is just a short drive away from Minnetonka and Maple Grove, and talk with a staff person at our dealership in person. If you think you’re ready to apply for a car loan at our dealership on any of our used vehicles, then visit us today!
