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How to Get a Better Credit Score

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Are you ready for your next new car, but you’re having trouble securing a credit card or loan because of your credit score? Your local Asheville team at Sunshine Chevrolet, Llc is here to help you figure out how to get a better credit score. Read on for our list of tips to increase your credit score. Contact us at Sunshine Chevrolet, Llc for any questions you have along the way.

Monitor Credit Reports

On top of larger issues like identity theft, smaller mistakes happen and will affect your credit score. When you’re ready to ask “how to boost my credit score”, be sure to pay attention to the facts on your credit reports by receiving a report from the three major credit bureaus: Equifax, Experian, and TransUnion. With the Fair Credit Reporting Act, each year you are entitled to a free copy that can be accessed at AnnualCreditReport.com.

Review Your Debts

When thinking of how to get a better credit score, get the full picture of what you owe by listing all of your debts. Some factors that go into determining your credit score are:

  • The debt to credit ratio: Weigh the total available credit vs. how much is actually charged. Typically, you should keep your credit card charges below 30% of the total limit each month.
  • Number of cards with balances: Lower scores can be caused by having several cards with balances.

Establish a Payment Plan

Once the debts are known, organize them into a repayment plan that includes taking care of the debts in collections, eliminating small balances on credit cards, and then paying down larger debts.

Open a Credit Card

Some of you might have low credit scores because you have never opened a line of credit or had a credit card before. Opening a card in Hendersonville as a way to raise your credit score, as long as the balance stays below 30% of the total and you pay your bill on time every month. An easy way to go about that is to have recurring charges paid with the credit card, and when the bill arrives, have the money already set aside to pay off the balance.

If regular credit cards aren’t available to you, consider a secured credit card. Secured credit cards are a good way to get started, however, they have a small limit and typically need a small deposit of a couple hundred dollars to open.

Establish a Credit Age

Along with these tips to increase credit scores, building credit happens over time. A good way to start adding to your history of credit is to become a user on a family member’s account. This will affect both parties, so make sure there is a clear understanding of timely payments, who is responsible for payments, and who is authorized to use this line of credit for purchases.

Limit the Number of Credit Applications

While it is easy to get caught up in the number of new card or loan options out there, you want to keep an eye on the number of applications. For certain applications, lenders do a hard inquiry of your credit and that can impact your score for up to a year.

Explore More Ways to Raise Your Credit Score at Sunshine Chevrolet, Llc!

Do you have a better understanding of how to get a better credit score? For answers to any additional questions, our finance center team at Sunshine Chevrolet, Llc is here to help. You can still get your new car and build credit along the way. Our experts can assist with applying for financing, explaining the benefits of leasing or financing, or calculating payments so you can get around Fletcher without worry.

Sunshine Chevrolet, Llc 35.47981, -82.56584.