3 Easy Ways To Improve Your Credit Score | Automotive Car Loans

Generally speaking, your credit score is used by potential lenders to help them determine whether to grant you a credit card, a line of credit, auto loan or mortgage, and on what terms would be most suitable for you.

You may be wondering… What can I do to boost my credit score? Here are a few tips:

1. Always Try To Pay Your Bills on Time
The key factors in your credit scoring comes from your track record for paying your bills on time. With your credit bureau reporting each month to Equifax and Transunion, missing a payment on a commitment you have (credit card or installment loan) can affect your score negatively. If you let your commitments go delinquent to the point of them being written off or closed by your credit grantor, a potential creditor won’t want to take a financial risk by lending to you.
But don’t worry! That’s not the end of your credit story, the good news is your credit score won’t be penalized forever, and a great way to come back from a delinquent status is to start paying all your bills on time or even before the due dates. Paying on time is a great way to continuously improve your credit score, and it has no disadvantages.

2. Dispute Errors On Your Credit Report
Your credit score is based on the gathered information in your credit report, so you want to make all possible efforts to ensure it is correct. Carefully review all the information on your bureau, this includes your personal information such as your date of birth, address and social security number, and the open trade lines also. If you notice there is something missing or there is a discrepancy showing, check the dispute process on the credit bureau’s website to find out how to correct the variance.

3. Pay Down Your Credit Bills
“Paying down a high-balance credit card can lower your utilization by further opening that gap between your available credit and the amount you owe,” Says Barry Paperno, a writer at SpeakingOfCredit.com and a former FICO credit expert. Paying off your debts might have the added advantage of saving you money in the long run. “By lowering your utilization in this manner, there will be no downside, only upsides,” Paperno said. “Along with contributing to a higher score, paying down card debt also reduces the amount of interest you’re paying.” It’s a win-win situation for you!

Bonus Tip:
Aim to keep the balance of each of your revolving credit accounts below 30 percent of their respective credit limits. This will help improve your scoring beacon.