Whenever you open a new line of credit, like a new vehicle loan, your credit score plays a pivotal role in the loan rates and terms you’re offered. The higher your credit score, the better the deal you’ll receive. But if your score is less-than-ideal, don’t panic. There are many ways to raise your credit score so you can obtain the best possible financing or leasing package on your next Orland Park or Oak Forest ride. Our finance team at The Garage at Bettenhausen teaches you how to get a better credit score below.

Tips to Increase Credit Score

If you’ve been internet searching for “how to boost my credit score,” you’ve come to the right place, as there are several good options for strengthening your credit and increasing that all-important figure. Here are some of the most effective ways to raise your credit score.

Check Your Credit Report

Your credit report may contain errors you aren’t even aware of, and this can easily diminish your credit score. Obtain a free credit report from each of the three major bureaus–Equifax, Experian, and TransUnion–and check that all information is correct. If there are mistakes, such as debts still showing up that have been paid off or debts you didn’t accrue, file a dispute with the bureau and get the issue corrected prior to applying for vehicle financing.

Pay Down Your Debts

If you can pay off at least some of what you currently owe, your credit score will improve. This is especially true if you have a high debt-to-income ratio, which is the amount of available credit you have versus the amount you have actually charged. Aim to keep your monthly credit card charges below 30% of the available balance, as this will strengthen your score.

Also, if you have multiple cards with balances, try to pay off or pay down some of the smaller amounts. In general, the more cards with balances a borrower has, the lower their score will be.

Open a New Credit Card

Opening a new card shows prospective lenders that you are a qualified and trustworthy borrower. Just make sure you keep your monthly charges below the 30% available-balance threshold. If you don’t qualify for a traditional credit card, open a secured card, which works like a debit card and allows you to spend off a prepaid balance. This too is a way to raise your credit score.

Keep New Credit Applications to a Minimum

Every time a prospective lender does a hard check of your credit, it can lower your credit score for a year or more. For this reason, limit how many new credit applications you pursue. This will put you in a better position to attain a deal with favorable terms.

Learn How to Get a Better Credit Score at The Garage at Bettenhausen

If you’re looking for additional ways to raise a credit score, feel free to contact us. You can also stop by the dealership; we’re conveniently located near Frankfort. Whether you’re interested in a classic car or mobility van, we have the financing and leasing options you need to buy with confidence.