How to Improve Your Credit Score

Are you worried that your credit score might be in the way of you getting your dream car? The team at Porcaro Ford is here to help! Our finance center is ready to help you learn more about how to improve your credit score before heading to our Ford dealership near Mount Pleasant. Learn different ways to improve your credit score today with our list of tips below!

Tips to Increase Credit Score: Check Your Credit Reports

Sometimes, credit scores are ruined by acts outside of our control. Identity theft and other accidents can wreak havoc on your financial life. So when you’re busy searching, “how to boost my credit score,” or spending time looking for ways to raise a credit score, make sure you’re informed on your credit scores. Get a score from all three major providers: Experian, Equifax, and TransUnion. The Fair Credit Reporting Act allows you access to one free copy a year at AnnualCreditReport.com, all without affecting your credit score.

Tips to Increase Credit Score: Assess Your Debts

Before you get a credit check or apply for a loan, get a handle on the exact amount of money you owe. Start paying off as much debt as you can before applying, and follow these tips:

• Your debt to credit ratio: How much available credit you have vs. how much you have actually charged. Ideally, you want to keep your credit card charges under 30% of the available balance every month. 
• Number of cards with balances: The more cards with balances, the lower your score. 

Tips to Increase Credit Score: Create a Payment Plan

Whittle down your debts by drawing up a payment plan. Start with urgent debts like those in collections, then move on to eliminating small balances on credit cards, and start paying down larger debts. Little by little, your credit score will improve with every payment that’s made on time.

Tips to Increase Credit Score: Open a Credit Card

Your credit score could also be low because you simply have never had a loan or credit card before. Opening a card in Kenosha can help establish credit, as long as you keep under the 30% balance and pay your bill on time every month. A simple way to improve your credit score is to pick one recurring monthly charge and have it paid with your credit card, making sure you set the money aside to pay the balance off when the bill arrives. 

If you don’t qualify for a regular credit card, consider a secured credit card. This type of card has a small limit and usually requires an initial deposit of up to a couple hundred dollars to open. 

Tips to Increase Credit Score: Build a Credit Age 

Your credit score is built over time, and with time, you build your credit history. If you’re starting today, then your score won’t be as strong as if you started a year ago. However, you can have a relative cosign to help improve your score. Make sure both parties have a clear agreement, and make sure all payments are made on time. Both will enjoy the benefits of improved credit!

Tips to Increase Credit Score: Minimize New Credit Applications

While a new card is definitely one of the ways to improve your credit score, opening too many too quickly can make your score go down. Also, when lenders perform an inquiry on your credit, your credit can be negatively impacted as well.

Find Out More Ways to Raise Your Credit Score at Porcaro Ford

Whenever you need help taking home your new Ford, Porcaro Ford near Sturtevant can help you! No matter if you need help with your credit score or learning about Ford maintenance near Caledonia, we’re always here to keep you informed. Contact us with any questions you may have, and one of our associates will be happy to help.