How to Improve Your Credit Score Before Buying a New Vehicle

Having a good credit score can really make a difference when you go to buy a new car.

A high credit score usually gets you a lower interest loan, saving you a pretty penny.

What do you do if you know that you’ll eventually need to get a vehicle but your credit just isn’t what it should be?

Here are four ways to give your credit score a boost before you try to buy.

1. Pay down credit cards.
One of the biggest factors in formulating your credit score is the ratio of how much credit you have versus how much you’re using. A smaller percentage results in a higher credit rating.

2. Get rid of credit card balances.
Another factor that goes into determining your credit score is how many of your credit cards carry a balance from month to month. If you have several cards with small balances, consider consolidating them onto one low-interest card. It’ll give your rating a boost.

3. Don’t make late payments.
One of the best things you can do for your credit score is pretty simple – pay all your bills on time, every month. Late payments are a major drag on your credit rating.

4. Don’t be so quick to get old debt off your report.
Usually, when you pay something big off, like your home or a vehicle, you try to get it removed from your credit report right away. That may not be the best option, however.

“Good debt” is debt that you have handled correctly and paid as agreed and it’s good for your credit!

Think ahead
Fixing your credit takes time. The earlier you start making a concerted effort to boost your rating, the better. Keep in mind that the decisions you make today can have a big effect on your future.

Come see us at the Park Auto Group to see how we can help you get the car that you want.

Categories: New Inventory, People