How to Improve Your Credit Score

If you’re looking for a car loan around Raleigh but find that your credit score is holding you back, you may be looking for ways to improve it. Fortunately, the finance team at Hendrick Chevrolet Buick GMC Southpoint has put together a guide outlining how to boost your credit score. Read on for actionable steps and ways to raise your credit score, and become one step closer to the new or pre-owned car you’ve been dreaming of!

Check Your Credit Reports

Small clerical mistakes can happen to anyone’s credit report, and can have an effect on your credit score without you knowing. If you’re looking for tips to increase your credit score, just ensuring that your credit reports are 100% accurate can be a good place to start. To be as exact as possible, be sure to order a credit report from each of the three credit bureaus so you can compare: Experian, Equifax, and TransUnion. Thanks to the Fair Credit Reporting Act, you can obtain one free copy of your credit report a year by visiting AnnualCreditReport.com. 

Assess Your Debts

Your credit score is majorly affected by your debts. In order to get on top of what you owe, make a list of all your current debts. Remember that your credit score can be impacted by your debt-to-credit ratio (how much credit you have vs. how much you have charged) and your number of cards with balances (the more of these, the lower your score will be).

Create a Repayment Plan

After you’ve listed and categorized all your debts, put together a repayment plan focusing on working to pay your larger debts, eliminating smaller balances, and tackling debts in collections.

Open a Credit Card

If you’ve never had a credit card or a loan in Cary before, that will naturally give you a low credit score. Opening up a new credit card and making sure you pay your bill on time can establish and improve your credit, particularly if you pick a monthly recurring charge to be paid off using your card. You should also make sure you keep under the 30% balance, or your credit score will be negatively impacted. And if you find you don’t qualify for a regular credit card, you could get a secured credit card instead—these have smaller limits and initial deposits of a few hundred dollars or so.

Build a Credit Age 

If you’re just starting out and need a good line of credit, consider becoming a user on a family member’s account. After all, your credit score builds up over time, and everyone needs to start somewhere. Make sure that you and your family member have firmly established who is in charge of payment and who gets to use the line of credit beforehand. You should be fine as long as the other party pays their bill on time.

Minimize New Credit Applications

Opening a new credit card or loan are two great tips to increase your credit score, but you should be very careful with these options. Don’t take out too many new credit cards at a time, as a hard inquiry by a potential lender will impact your credit score for up to a year.

Find Out More Ways to Raise a Credit Score at Hendrick Chevrolet Buick GMC Southpoint

If you have any questions or want more information on how to get a better credit score, you can contact our office or stop into our onsite finance center near Chapel Hill anytime. You can also check out our online inventory if you’re looking to bring home a new Chevrolet, Buick, or GMC!