How to Get a Better Credit Score

Credit History Document

Securing a loan for a new car for your Waco commute can be hard if your credit is subprime. However, just because your credit may not be as high as you want it to be doesn’t mean that it has to stay there. The team at Allen Samuels Auto Group is here to help you learn how to boost your credit score, so you can get the loan you want at a great interest rate. Check out some of the best ways to raise your credit score with us, and visit us to go over your financing options.

Tips to Increase Your Credit Score

If you’re like most Aransas Pass drivers with subpar credit, then you may be unsure of where to start. Luckily, the finance center at Allen Samuels Auto Group has put together a list of some of the best ways to raise your credit score, so you can get back on track to getting the loan you want for the car you want. Check out our tips below:

Check Your Credit

If you’re unsure of how to get a better credit score, start by checking your credit score. Sometimes, reporting mistakes can happen and can have an impact on your credit score, so check out your credit score and see that everything is reported correctly. Get a credit report from the three major credit bureaus:

  • Experian
  • Equifax
  • TransUnion

Due to the Fair Credit Reporting Act, you’re entitled to one free copy a year, which you can access at AnnualCredit Report.com.

Go Over Your Debt

Another helpful tip to increase your credit score is to go over all of your current debts and put together a plan. Here are some things to consider:

  • Debt vs. Credit: This is how much credit you have charged vs. how much credit you have available. Try to keep your credit charges under 30% of your available balance every month.
  • Balances on Cards: The more cards you have with credit balances, the lower your credit score will be.

Put Together a Repayment Plan

Once you have all of your debts assessed, it’s time to put together a plan to tackle your debt. Here is a recommended strategy:

  • Start Small: Pay off the small things first, like credit card balances. 
  • Budget Accordingly: Make a list of how much you can afford to pay each month.
  • Be Patient: Paying off credit takes time, but know that with each payment, your credit score increases.

Open a Credit Card

Sometimes, your credit score may be low due to the fact that you’ve never taken on debt or opened a credit card. Opening a card is one of the simplest ways to improve your credit as long as you pay your balances in full every month. One of the best ways to raise your credit score is to assign your credit card to a recurring monthly charge and have that charge paid with your credit card. Then, pay off that credit balance each month with your debit card.

If you don’t get qualified for a standard credit card, then try opening a secured credit card, which typically has a small limit and only requires a deposit amount of around $200 to open.

Become a Used on Your Family’s Account

If you’re starting out, then your credit score will take some time to build on your own. But, if you become a user on a family member’s account, then their credit score can reflect well on you as long as the family member on the account pays their credit balance every month in full. Just make sure that all members on the account communicate clearly as to who gets to use the line of credit and who handles payments.

Keep Credit Applications to a Minimum

As mentioned earlier, applying for a credit card can help you raise your credit score. But, applying for too many can negatively impact your credit score as lenders frown upon multiple credit applications. To avoid this, keep your credit applications to a minimum.

For more car-buying tips, rely on the experts at Allen Samuels Auto Group, and let us help you get the car you want for your Hutchinson commute.

Raise Your Credit Score at Allen Samuels Auto Group

Now that you know how to get a better credit score, visit Allen Samuels Auto Group in Waco to go over your options. Contact us to speak with one of our finance professionals as soon as possible.

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