How to Get a Better Credit Score

Is your credit score not quite where you want it to be? Maybe you have yet to establish credit. If this is the case, it may be causing you some difficulties when trying to secure a car loan. Not sure how to get a better credit score? The finance experts at Tulley Mazda are here to help. We have provided a few tips to increase your credit score to ensure that you are getting the best deal possible when it’s time to purchase or lease your next vehicle. 

Inspect Your Credit Reports

Searching online to find “how to boost my credit score” or “ways to raise credit score”? The first step is to check your credit reports. You want to rule out any mistakes or issues with identity theft that could be impacting your score. Be sure your reports are as accurate as possible by obtaining one from all three major credit bureaus: Experian, Equifax, and TransUnion. Thanks to the Fair Credit Reporting Act, you are entitled to one free copy of your credit report on an annual basis that you can access at AnnualCreditReport.com. 

Take a Look at Your Debt

Assess all of your debts so you have a good idea of what you currently owe. When it comes to debt, these factors can impact your credit score:

• Your debt to credit ratio: If possible, it is best to keep your credit card charges under 30% of your available balance each month. 
• Number of cards with balances: The more cards you have with balances on them, the lower your credit score. 

Create a repayment plan that includes eliminating debts in collections, small balances on cards, and working to lower larger debts. 

Apply for a Credit Card

If you have not yet established credit, opening a credit card can be beneficial. Remember that you want to keep charges under the 30% of the available balance and pay your bill on time each month. A helpful tip is to choose one recurring monthly charge and have it paid with your credit card. Keep that money set aside so you can pay it right away when the bill arrives.

What happens if you do not qualify for a regular credit card? A secured credit card is still an option. With this card, you will have a small limit and are required to make a small initial deposit to open the card. 

Minimize New Credit Applications

Be careful when applying for new credit. Credit applications can impact your credit score for as long as a year. Choose wisely when you apply for credit. 

Learn More About Ways to Raise Credit Score with Tulley Mazda

Do you still have questions about how to get a better credit score? Do not hesitate to reach out to the finance department at Tulley Mazda. We would be happy to provide you with the information you need.