How to Boost My Credit Score?

Car key & credit card on a signed contract

 

Are you looking to buy a new or used car, but your credit score is preventing you from getting the rates you’re hoping to secure? If so, you’re likely looking for ways to raise your credit score. While you can’t completely fix a poor credit history overnight, you can begin to make major improvements right away. Read on with us below to learn how to get a better credit score with our finance team!

Tips to Increase Credit Score: Check Your Credit Reports

Beyond major concerns like identity theft, mistakes can appear on your credit report and negatively impact your score. So when you begin to ask, “How to boost my credit score?” verifying the accuracy of your credit report is a great place to start. You can obtain a copy of your report from the three major credit bureaus: Experian, Equifax, and TransUnion. The Fair Credit Reporting Act entitles you to one free copy each year that can be accessed at AnnualCreditReport.com. If you spot and dispute an error, that can be one of the quickest ways to raise your credit score!

Tips to Increase Credit Score: Assess Your Debts

If you’re looking for tips on how to get a better credit score, it’s wise to assess what you owe. Two major determining credit score factors include:

  • Your debt to credit ratio: The amount of available credit you have vs. how much you’ve charged. In an ideal scenario, you’ll keep your credit card charges below 30% of your available limit each month. 
  • Number of cards with balances: The more cards you hold with pending debt, the lower your score. 

Tips to Increase Credit Score: Create a Payment Plan

If you’re flustered and find yourself asking, “How to boost my credit score?” working with your debt collectors to establish a payment plan is a great idea. As you responsibly tackle debt, you’ll improve your score and reduce the number of outstanding accounts. 

Tips to Increase Credit Score: Open a Credit Card

While some struggle with a poor credit history, others simply have no history to begin with. If you’re in that camp, opening up a credit card is a great way to establish good credit habits. To start, pick one recurring monthly charge, and use your credit card to pay for it. Make sure you have the money to pay off that debt set aside and make your credit card payment on time. 

If you’re not eligible for a credit card, you can explore a secured credit card. This option will give you a smaller credit limit and may require a deposit, but it can help you build your credit history. 

Tips to Increase Credit Score: Build a Credit Age

Credit scores take time to develop and improve. One way to kickstart that process is to become a registered user on a family member’s account. If they have a strong credit history, those positive habits will reflect on you. Before you set out on this process, be certain that both parties are fully aware of the logistics and how payments will be handled. 

Tips to Increase Credit Score: Minimize New Credit Applications

For some, opening a new credit card will drastically improve their credit history. However, if you have active credit, you’ll want to limit those hard inquiries to avoid damaging your score. Be selective with your applications and limit them to a two-week window. This will minimize the hit your credit score will take. 

Discover More Ways to Raise Credit Score at Suntrup Volkswagen

Now that you have ideas on how to get a better credit score, you can prepare for those major purchases ahead. Our team here at Suntrup Volkswagen takes great pride in serving the St Louis community and beyond. If you need to boost your credit score to make a purchase that will upgrade your commute from St Peters to Webster, Suntrup Volkswagen is here to help. Visit us in St. Louis or contact us to learn more!

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