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Like other St. Louis and St. Peters drivers trying to secure a car loan, you may be asking, “How to boost my credit score?” The team at Travers Automotive Group has you covered! Learn how to get a better credit score below, and don’t hesitate to contact us if you have any questions about your auto financing options.
Before we dive into ways to raise your credit score, you should first get a credit report from all three major credit bureaus: TransUnion, Equifax, and Experian. The Fair Credit Reporting Act enables you to get one free copy of your credit report from each bureau per year at AnnualCreditReport.com.
Your current debts impact your credit score, so list all of them out to get an idea of how much you owe. Pay attention to your debt-to-credit ratio and the number of cards you have open with balances, as these factors can lower your credit score. In a perfect world, your credit card charges should be under 30% of your available monthly balance, and you should limit the number of credit cards you have open.
Paying off your debt is an effective way to boost your credit score, so draw up a payment plan to start chipping away at card balances, any debts you have in collections, and more significant debts, such as student loans.
If you’ve never had a credit card or a loan in your name before, opening a credit card is another great way to raise your credit score. If you keep your charges under 30% of the monthly balance and make your payments on time, your credit score should start going up.
A secured credit card is another option if you don’t qualify for a regular credit card. Secured credit cards typically require a deposit to open and have smaller credit limits.
One of our favorite tips to increase your credit score if you’re just starting out is to ask a family member to add you to their credit card as an authorized user. If they make their payments on time, your credit score will improve over time as well.
While opening a credit card or securing a loan is an effective tip to increase your credit score, you should still try to limit the amount of applications you’re sending out. When you apply for a new card or loan, lenders will do a hard inquiry of your credit that can affect your score for up to a year.
If you want to learn more about how to get a better credit score, don’t hesitate to contact our finance center or visit us in O'Fallon at your earliest convenience. We’re just a short drive from Florissant and are ready to help you secure an auto loan for the pre-owned vehicle of your dreams.