Everyone knows that having a poor credit score is not good when it comes time to make a big purchase. If you know that you have bad credit but are not sure about how to improve it, we are here to help! Keep reading below for a few helpful steps to take when it comes to improving your credit score!
- Pay attention to your credit report. It is important to pay attention and know what is on your credit report so that you can clean it up. Look for any accounts that have late payments or unpaid bills so that you can stay on top of them in the future.
- Keep a low credit utilization. Credit utilization is a ratio of the amount you owe compared to how much credit you have. It is suggested to try and keep your utilization rate at 30 percent or less. If you have a $10,000 credit limit and a $4,000 balance, then your credit utilization is 40 percent. Another way to try to improve this is to get a higher credit limit.
- Pay your expenses twice a month. Even if you have the money to pay off your balance at the end of each month, it can help to pay twice a month or more. This could give you a lower credit utilization rate.
- Open a new account. Having multiple accounts will help to balance out your score since your credit is pulled from the information on each account. If you are going to open more accounts, be sure not to open a lot at once as it may suggest to the credit card companies that you want to go on a spending spree.
We hope that you found these tips helpful and that you are on the way to rebuilding your credit. Improving your credit will make everything financially a little less stressful and make it easier for you to achieve your goals. If you are in the market for your next vehicle our finance team will work with you to find a plan that fits your needs. Contact us with any questions!