How to Improve Your Credit Score

Is your credit score causing you problems in securing a credit card or car loan? When you need help figuring out how to get a better credit score, the team at Liberty Buick, Inc. is here to help. Find out ways to raise your credit score today with our list of tips. 

Check Your Credit Reports

Beyond a bigger issue like identity theft, mistakes do happen and can impact your credit score. So when you ask how to boost my credit score, or ways to raise your credit score, make sure your reports are as factual as possible by obtaining one from all three major credit bureaus: Experian, Equifax, and TransUnion. The Fair Credit Reporting Act entitles you to one free copy a year that you can access at AnnualCreditReport.com. 

Assess Your Debts

List out all of your debts so you can get a handle on what exactly you owe. Two determining credit score factors are:

• Your debt to credit ratio: This is how much available credit you have vs. how much you have actually charged. Ideally, you want to keep your credit card charges under 30% of the available balance every month. 
• Number of cards with balances: The more cards with balances, the lower your score. 

Create a Payment Plan

Attack your debts with a repayment plan that includes tackling debts in collections, eliminating small balances on cards, and working to pay down larger debts. 

Open a Credit Card

Your credit score could also be low because you simply have never had a loan or credit card before. Opening a card in Surprise can help establish credit, as long as you keep under the 30% balance and pay your bill on time every month. A simple way to improve your credit score is to pick one recurring monthly charge and have it paid with your credit card, making sure you set the money aside to pay the balance off when the bill arrives. 

If you don’t qualify for a regular credit card, consider a secured credit card. This type of card has a small limit and usually requires an initial deposit of up to a couple hundred dollars to open. 

Build a Credit Age 

Your credit score is built over time. If you are starting today, one way to improve or add to your history is to become a user on a family member’s account. As long as they have paid their bills on time that will begin to reflect well on you. Just make sure both parties have a clear agreement on who gets to use this line of credit and how payments will be handled. 

Minimize New Credit Applications

While we discussed a new card or loan as one of the ways to improve your credit score, you will want to be judicious in applying for new cards or loans. When lenders do a hard inquiry of your credit, that can end up impacting your score for up to a year. 

Find Out More Ways to Raise Your Credit Score at Liberty Buick, Inc.

Looking for additional advice or help on how to get a better credit score? For more tips to increase your credit score, contact the finance center at Liberty Buick, Inc.. Our credit experts can walk you through the process and answer any additional questions in Peoria. We also invite you to check out our Buick specials and the My Buick Rewards program!