How to Improve Your Credit Score

Car key & credit card on a signed contract

Are you wondering how to boost your credit score? There are a number of ways to quickly raise your credit score, one of them is taking on a large loan that you know you can afford to reliably pay off, like an auto loan. Take a moment to read all of our tips to increase your credit score. Then, fill out a pre-approval and contact Bell Road Mitsubishi to discuss your options near Glendale.

Identify Your Cred Score

The first step in how to get a better credit score is to identify what your credit score is. Bear in mind that if you pull a credit score, it will temporarily lower your score, so be sure to only pull one or two reports. Also, it’s imperative that you only pull your reports from major institutions, like Experian, Equifax, or Trans Union. There are more than a few sites that may sell your information, or give you a less than factual report. Also, if this is the first time pulling your score this year, make sure you don’t pay for your credit report, as the Fair Credit Reporting Act entitles you to a free report every year. Our Peoria neighbors can obtain this free report from AnnualCreditReport.com.

Assess Your Debts

Next up among our tips to increase your credit score: identify your debts. The main factors that determine your credit score are your debt-to-income ratio and the number of cards you have open that have balances. As for your debt-to-income ratio, make sure that your monthly debts account for less than 30% of your monthly income. And when it comes to the number of cards you have open with balances, the general rule of thumb is to have as few balances as possible.

Devise a Payment Plan

The next step in how to boost your credit score is to improve your debt-to-income ratio and demonstrate that you can reliably make payments on your debts. To do this, develop a repayment plan for your debts that you know you can afford. Even if it’s slow-going, making consistent payments on your debts will dramatically improve your score.

Open a Credit Card

While we mentioned that it’s important to minimize the number of balances on different cards that you have, it’s also important to build credit. If you’ve never had a credit card or taken a loan, you’ll want to open a car and begin establishing credit. Just remember to keep that monthly debt-to-income ratio under 30% and to set yourself up for success when it comes to making reliable payments. Other tips for increasing your credit score by establishing credit include opening multiple credit accounts, so you can have a high debt ceiling, which will raise your score. The trick, however, is to make sure you don’t rack up multiple balances.

Have Questions About Our Tips to Increase Your Credit Score?

Now that you’ve read about how to get a better credit score, if you have more questions about ways to raise your credit score, call Bell Road Mitsubishi at 602-892-3870. We’re more than happy to answer any of your questions about how to boost your credit score near Mesa. On a final note, taking out a large loan, like an auto loan, is one of the best ways to raise your credit score. Let us help you with a custom-tailored auto loan that you know you can make reliable payments on! While you’re here, be sure to explore our new vehicle specials to see how much you can save!

 

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