6 Ways To Improve Your Credit To Buy A Car
If you are trying to buy a car with bad credit, you know that the process can be difficult. Even if you already have bad credit, there are steps you can take today that might make it easier to buy a car even if you are not happy with a less-than-stellar score. This guide will help you take steps toward securing a loan for financing for your new car:
1. Keep Older Credit as Long as Possible
One of the first things you can do is ensure that you keep older credit as long as you possibly can. Your older credit lines hold more weight in your favor than the newer lines you open. Make sure to keep these lines open as long as you can if they give your credit score a boost. Your credit history actually accounts for a large portion of your score.
2. Consolidate Problem Cards
Are you struggling to pay multiple credit card bills each month? It might be time to consolidate them into one bill instead. Having too many balances carried on your credit can negatively impact your credit.
3. Set Up Payment Reminders
It is essential that you pay your bills on time, especially because payment history is so largely attached to your credit report. Payment reminders or automatic billing can make it much easier for you to pay things on time. You might also find it worthwhile to invest some time in finding a good app to help you set up a budget.
4. Aim for Lower Credit Utilization
How you use your credit is important, not just how you pay your bills. Make sure that you keep your balance low from month to month, keeping less than 50% of your credit used.
5. Avoid Applying for New Credit
Until you find a car that you want to buy, avoid opening up any new lines of credit. These can be detrimental because they bring down the overall age of your credit history. Younger credit fails to offer the image of stability you want a lender to see when you shop for a new car.
6. Communicate with Creditors
When you are behind on bills, creditors may be more willing to work with you than you might think. They may be willing to lower your minimum payment or give you a break for a month if you let them know.
Bad credit does not have to stay bad credit. By tweaking your financial routine, you can better focus your efforts on improving your credit so you can buy that car. Contact bad credit car lots near you for more information.