Improve Your Credit Score
Credit scores are not usually boasted about. People tend to worry that their score will hold them back from making car loans or that potential lenders won’t look past their score.
Contrary to common belief, you certainly are not bound to your score. In fact, there are three key ways that you can even give it a good boost!
1.Keep Track of Your Spending
The most fundamental part of having a good credit score is being on time with all of your billing payments, not overspending your line of credit, and having a relatively manageable amount of debt.
Don’t throw away your everyday bills! Keep track of your spending habits so that you don’t fall
behind with credit card payments. If you’re one of the lucky ones, and you already have good credit, keep it up and stay organized!
2.Double Check Your Score
Surprisingly, credit reports sometimes contain errors, which end up negatively affecting your score. Some accidental mistakes can potentially result in your credit score dropping an outrageous 50 points! In order to ensure that your credit file does not have any kind of error within it, you can have your file reviewed from a major and credible credit reporting agency like TransUnion or Equifax.
3.Small Loans to Show-Off Your Good Habits
The ubiquitous saying of “actions speak louder than words” is one that can definitely help you to raise your credit score. Demonstrating that you can pay off a debt improves your score. If you take out a small loan and pay it back on time, you are adding positive credit activity to your record, and this is exactly what will improve your score.
Instalment loans, in particular, increase your score most dramatically. Getting a loan from a peer-to-peer service is most beneficial as they report your borrowing history directly to credit bureaus. One needs to be aware and diligent, since signing up for a small loan can be detrimental to your score if you don’t end up making your payments on time.
4.Ask for a Co-Signer
We know that adding a co-signer to a car loan application will act as a more reliable addition, and can also improve your credibility. But did you know that a co-signer can also help you build credit? Your co-signer on a loan can give you the opportunity to establish a better credit score or contribute to build a more consistent credit history.
Though it may be quite clear that your credit rating does highly affect your risk at attaining a competitive loan, you can still try to apply for online auto loans that can be more lenient in their policies and loan programs, as an alternative to dealing with banks and dealerships. Keeping in mind these four ways to improve your credit score will surely get you one step closer to the loan you need, to get yourself that car you’ve got your heart set on.