How to Improve Your Credit Score
Credit scores are like your driving record: they take into account years of past behavior, not just your present actions. And having a less than stellar credit score can greatly affect your ability to do a multitude of things. Like applying for a job, getting that new apartment, or securing financing for a new car.
Lucky for you, at BC Drive, we work with all credit standings. Because we understand that life happens and your past shouldn’t reflect your present. You need a car and you need it now, and we make that happen for you.
In the meantime, while we work to find you a new car, there are simple things you can do or keep an eye on to help boost your credit.
Get Your Report
This should be the first thing you do. If you aren’t sure what your credit score is, get checked. It's easy, and you get a free copy of your credit report every year – take advantage of it! Order yours through Equifax or TransUnion to figure out where you stand, what your score is, and get a better idea of your credit history. Knowing exactly where you stand is going to set you and your finances up for success. The sooner you know, the more you'll be able to help lenders and financing agencies, like us, get a better understanding of how we can help you.
Setup Payment Reminders
If, like all of collective society, you have a multitude of bills that are due on various, random days of the month, it's helpful to set up reminders so you don't miss them. Making your bill payments on time, in full, is one of the biggest contributing factors to your credit scores. It doesn’t matter the amount; even if you had $1 owing and you missed it, you’re going to get dinged. With so many apps available these days, there is an endless supply of technological reminders to help you keep your payments consistent and on time. Consider also enrolling in automatic payments through your credit card or withdrawals from your bank account.
Know Your Limits
This is a hard one, since it requires massive self-discipline. It's like saying: here is a slice of pizza that you could have but you shouldn't. Trust us. We know how bad you want that piece of pizza. But don't. Think of that shiny new car instead.Try to keep your credit-card balance well below the limit. If your cards are almost maxed out, that could mean you’re overextending your finances and are more likely to make late or missed payments. Not to mention that the higher your balance, the more impact it has on your credit score.
Pay Off Your Debts
It’s easier said than done, we know. But paying off your debts as quickly as possible is one the most effective ways to raise your score. It takes one year to raise your score 100 points. That’s 100 points from Fair to Good. But if your score is hovering around the 500 number, that’s considered poor credit, and it can take 2-3 years to improve. Make it a priority to pay off your debts as quickly as possible so you avoid any unfortunate consequences that may make future opportunities impossible.
Reduce Credit Applications
We all know that one of the best ways to improve your credit is to get a credit card or small loan. It shows that you’re making amends on your credit history and if you’re making timely payments in full every month, that you’re a responsible account holder. However, if you’re applying for too many credit cards, many potential lenders asking about your credit in a short period of time will have a negative effect on your score.
Have you seen what we can do for you? At BC Drive, whatever your credit history, we work with you to find the best vehicle and financial plan for your lifestyle. Apply today!