What To Know When Repairing Your Credit

What To Know When Repairing Your Credit

Apply for Financing

How to repair your credit

Have you been turned down for a loan recently? Are you wishing you could repair your credit so you can get a loan for the car you really want? At Autoloan Credit Express in Fall River, MA, we're in the business of helping you do exactly that. While credit and financing is a sideline at most car dealers, it's our entire focus. We've helped many people get their credit back on track for years, and we can do that for you. Here's some practical advice.

The first step is to see where you stand

We would never promise your credit score can be fixed overnight, but the best time to start on that journey is right now. The sooner you begin, the sooner you can reach your dream of having a good, solid credit score. And your credit score is where you want to start. By knowing your score right now, you can set short-term goals and gradually raise your number higher. The idea is to keep checking your score and keep taking positive steps forward.

How do you find your credit score? It's not hard

You can find your current credit score by going online to a leading credit agency like Equifax, Experian or TransUnion. To qualify for a car loan, you will need a credit score around 500 or higher, and that's the minimum. By getting to a score of 780 or higher, you can qualify more easily for a car loan and get the best interest rates. Let's look at some of the positive, pro-active steps you can take to start slowly building your credit higher.

Pay your bills on time and you're off to a good start

Maybe it sounds simple and obvious, but consistently paying your bills on time - and if possible, before the due date - is one of the most basic but most effective ways to start building up your credit. Every time you don't make a payment on time, whether it's a credit card payment or a loan payment, your credit ranking takes a hit. But when you keep making payments early or on time, month after month, your credit score gradually rises.

Do you have big credit card bills? At least make the minimum payment

When your credit card bill arrives, you can pay the full statement balance or the minimum payment. If you can't pay the entire balance right now, at least pay the minimum. That keeps your account in good standing and helps you avoid late fees or penalties. But remember: Just paying the minimum is merely avoiding a penalty. To really start building your credit, pay as much as you can and aim for the full amount.

Don't have a credit card? Get one and make payments faithfully

Having a credit card is one way to repair your credit because it lets you show you can make payments regularly. But don't apply for more credit than you can manage, whether you live in Swansea or Seekonk, MA. Start small with one card and develop a habit of paying on time. Applying for too many credit cards will show up on your credit history. It can make potential creditors believe you're taking on more debt than you should.

If you can't pay a debt, contact your creditors, don't ignore them

Creditors will appreciate you contacting them and may be willing to work out a payback plan that gives you lower payments for a while. If you can't work out an affordable plan, contact a credit counselor who can help you keep making progress. If you want more ideas and practical help in financing a car, contact us at Autoloan Credit Express in Fall River MA. We'll help you earn the better credit you deserve.