How to Boost Your Credit Score

Refinance
Are you looking to finance a new or pre-owned vehicle near Gretna, LA? Then you may be interested in learning how to boost your credit score. Check out some ways to raise your credit score with Leson Chevrolet Company, Inc. below, and don’t hesitate to contact our Harvey finance center if you have any questions.

Check Your Credit Reports

First, get a credit report from all three major credit bureaus: Experian, Equifax, and TransUnion. Why? When it comes to your credit score, mistakes do happen, so this will ensure the highest level of accuracy. The Fair Credit Reporting Act ensures you one free copy a year, which you can access at AnnualCreditReport.com.

 

 

Assess Your Debts

You’ll also want to have a good understanding of what you currently owe. Factors that affect your credit score include:

  • Debt to credit ratio: How much you charged vs. how much available credit you have (under 30% of your available credit each month is ideal).
  • Number of cards you owe on: The more credit cards you have balances on, the lower your credit score will be.

Create a Payment Plan

Now that you’re familiar with your credit score and current debts, draw up a repayment plan. You’ll want to include:

  • Small balances on cards
  • Larger debts, such as student loans
  • Debts in collections

Open a Line of Credit

A potential reason your credit score is low is that you’ve never opened a credit card before. If you use it responsibly, having a credit card is a great way to raise your credit score. Pick a recurring payment, such as your auto insurance or utilities, and pay it with your credit card each month.

To avoid getting yourself in more debt, aim to keep your balance under 30% of your credit limit and pay off your bills in full each month. If you only pay off the minimum balance due each month, you’ll be charged interest.

Do you not qualify for a regular credit card? A secured credit card is your next best bet, but it typically requires a deposit to open and has a small credit limit.

Become an Authorized User on a Family Member’s Account

If you’re not ready to open a credit card yet and are wondering how to boost your credit score, you can ask to be put down as an authorized user on a family member’s credit card to build a credit age. If they make their payments on time each month, that good credit will start to be associated with you.

Depending on what the primary cardholder wants to do, you may be issued your own card with a customized credit limit. Ultimately, they will still be responsible for making the payments each month, so make sure you both have a clear understanding of how you want to handle this. They may even choose to not provide you with a card at all – but just being associated with their credit can help you improve your score over time.

Limit Applications for New Credit

While opening a credit card or taking out a loan is a good way to raise your credit score, be cautious of how many applications you send out. When you apply for a credit card, lenders perform a hard inquiry of your credit, which can affect your score for up to a year.

Learn More Tips to Increase Your Credit Score with Leson Chevrolet Company, Inc.

If you’re looking for more ways to raise your credit score, Leson Chevrolet Company, Inc. is here to help! Contact us today, or visit our dealership near Marrero and Belle Chasse. In the meantime, check out more finance tips from our experts, including the best place to get a car loan.

 

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