Five Tips For Improving Credit Score For Auto Loans Mount Pocono PA

5 Tips For Improving Your Credit Score For Auto

Whether you’re taking out a loan for a vacation with friends or a new car, your credit score plays a part in the type of loan offers you receive.

While a high credit score is indicative of more desirable loan rates, there are ways to improve your credit score as you gear up for your purchase. Local car shoppers in Scranton, Tobyhanna, Stroudsburg, and East Stroudsburg can check out these five tips for raising your credit score leading up to a car purchase.

Should you have any questions, reach out to our auto finance team here at Ray Price Chevrolet in Mount Pocono, PA.

 

1. Request Your Free Credit Report

The first step to boosting your credit score is knowing what it is! By being proactive and evaluating your report ahead of time, you know where you stand and how you can begin to improve. If there are any inaccuracies on your report, from your personal information to your payment history, get these corrected right away.

Every U.S. citizen is eligible to get a free copy of their credit report from each of the three major bureaus (Equifax, Experian, and TransUnion) once per year from AnnualCreditReport.com. Retrieve your report from one bureau at a time, waiting a few months in-between. By doing so, you can keep a close eye on your credit status and watch for improvements.

 

2. Minimize Lines Of Credit

In an effort to improve your credit score, it's a good idea to pay off credit cards that you don't use often or use on occasion for small purchases, then eliminate these accounts.

Having many lines of credit under your name that are used sparingly could impact your credit score in a negative way. It's better to focus on just one or two credit cards and diligently use them, vs. three or more.

 

3. Keep Credit Card Balances Low

Taking out copious amounts of money and keeping your balances high over a multi-month period is a red flag for your credit score. If you do have a high balance on one or more of your cards, implement a plan to pay these costs down before adding on more expenses.

Set aside an amount of money from each of your paychecks to ensure you're keeping balances low, if not fully paid month to month.

 

4. Set Up A System Of Reminders For Bill Pay

A sporadic payment history is one behavior that can weigh heavily on your credit score. Still, it's never too late to turn things around. If you know you have an issue with remembering to make payments on time or budgeting your money throughout the month, take preliminary action.

Some credit providers offer routine reminders each month that can alert you by email or text message of when an upcoming payment is due. Make staying on top of your payments a personal goal and tell a close friend or loved one about it-somebody to help keep you accountable can go a long way.

 

5. And Repeat!

Banks and financial institutions look for consistency and low risk in their prospective lendees. You can improve your credit score in a matter of weeks and months; however, it comes down to the action you put forth today and sticking to a responsible spending pattern.

We hope these tips help you get ready for your next auto purchase! For more information about auto loans, Mount Poconos' own Ray Price Chevrolet can help. Our finance team is committed to empowering our customers in Scranton, Tobyhanna, Stroudsburg, or East Stroudsburg with personalized payment plans that work for your unique financial situation. Get in touch with us today.

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