How to Improve Your Credit Score

Is your credit score causing you problems as you seek to secure a credit card or car loan? If you have questions about how to get a better credit score, the friendly finance experts at Bettenhausen Automotive are here to help. Learn new ways to raise your credit score today with this handy guide.

Tips to Increase Credit Score: Check Your Credit Reports

Identity theft might be a leading cause of errors on your credit report, but human error causes mistakes sometimes that can impact your credit score. So when you ask how to boost my credit score, or ways to raise credit score numbers, make sure your reports are as factual as possible. Obtain one from all three major credit bureaus – Experian, Equifax, and TransUnion – taking advantage of the Fair Credit Reporting Act which entitles you to one free copy a year accessible at AnnualCreditReport.com.

Tips to Increase Credit Score: Assess Your Debts

List all of your debts to get a better handle on what you owe, exactly. Two determining credit score factors are:

• Your debt to credit ratio: 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.

Tips to Increase Credit Score: Create a Payment Plan

Attack your debts with a repayment plan that tackles balances in collections, eliminates small balances on cards, and pays down larger debts. Once you have a plan in place, it’s much easier to see allocate your funds accordingly.

Tips to Increase Credit Score: 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 Tinley Park can help establish credit, as long as you keep under the balance under 30% and pay your bill on time every month. A simple way to improve your credit score is to pick one recurring monthly charge and pay it 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 with a small limit, usually requiring an initial deposit of up to a couple hundred dollars.

Tips to Increase Credit Score: Build a Credit Age

Your credit score is built over time. 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 it will reflect well on you. Just make sure both parties have a clear agreement on who actually gets to use this line of credit and how payments will be handled.

Tips to Increase Credit Score: Minimize New Credit Applications

Be judicious in applying for new cards or loans. A new card or loan can improve your credit score, but applying means allowing lenders to perform a hard inquiry of your credit, which can impact your score for up to a year.

Find Out More Ways to Raise Credit Score at Bettenhausen Automotive

Looking for additional advice or help to get a better credit score? For more tips to increase credit score, contact the Finance Center at Bettenhausen Automotive. Our credit experts can walk you through the process and answer any additional questions in Orland Park.

Once you’ve got your credit up to snuff, find out what qualifies as good mileage on a used car and explore your pre-owned in-house financing options! While you’re at it, check out some of our favorite things to do in Tinley Park!