Car Credit Is Hard To Come By So Improve Your Credit Score
If you have tried to get a car loan recently you know how picky the loan companies have become. Oh sure, they advertise low interest rates but when you actually go to buy that car you find out your credit score isn’t good enough for the low rate and, instead, you end up paying 10 to 12 percent. When looking for car credit your score definitely matters so do some work beforehand to get it as high as you can.
First, request a free copy of your credit report (there are many places on the web where you can do this) and check to make sure there are no errors. You would be amazed at how many time people are turned down for loans because of some factor on the report which is not true. If you have a discrepancy contact the bank or company the listing is from and see if you can get it resolved. If not, you can add a note of explanation.
Second, pay down your credit cards. One factor in your score is the percentage of your available credit you are using. If you are maxed out that does not look very good at all. You want to show you can handle credit and one way to do that is to have a balance in reserve.
Another thing to look at is the type of credit you have. You are better off to have several different classes of credit instead of just one class like only credit cards. Try to get a revolving account like Sears for example, and also get a small bank loan and pay that off. Both of these will expand the types of credit which will give you a boost.
Lastly, be sure to make all your payments on time. The goal is to have the term “Paid as Agreed” next to every listing on your report. This means you make your payments on time. Believe me trying to get car financing with no credit is not any fun at all, so work on your credit score now before you try to buy a new car.
Tags: car credit, car financing, car financing with no credit