How to Get a Better Credit Score

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Before you start shopping for a new or pre-owned car in the Macon area, you'll likely check your credit score to get an idea of what your interest rate on an auto loan might be. If it's taken a hit in recent years and you want tips to increase your credit score, the finance team at Five Star Lincoln Warner Robins can help! Take a look at our ways to raise your credit score then explore your finance options with us. 

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How to Boost Your Credit Score 

Knowing how to boost your credit score can help you with just about any major purchase you need to make in Warner Robins or Dublin. That's because your interest rates for financing purchases like furniture, vehicles, and more can depend on your score. Here are some tips to increase your credit score:

Check Your Credit Reports

You might be surprised at how often mistakes are made on credit reports. So the first step in how to get a better credit score is to make sure everything on your credit report is correct. Get a copy of your credit report from any of the major credit bureaus (Experian, Equifax, and TransUnion). The Fair Credit Reporting Act entitles you to one free copy of your credit report every year that you can get from AnnualCreditReport.com. If there are any mistakes, start the correction process by contacting one of the three credit bureaus. 

Assess Your Debts

Two factors determine your credit score: 

  • • Your debt to credit ratio: This is how much available credit you have compared to how much you owe. It's smart to keep your credit card charges under 30 percent of the available balance every month. 
  • • Number of cards with balances: The more cards with balances, the lower your score. 

When you assess your debts, make a list of every debt you owe, then calculate your debt-to-credit ratio. This will give you an idea of where improvements can be made by paying the cards with over 30 percent charged. 

Create a Payment Plan

Attack your debts with a repayment plan that includes tackling debts in collections, eliminating small balances on cards, and paying down larger debts. 

Open a Credit Card

If you don't have much debt, or you've never financed anything or used a credit card, your score might be low because you don't have a proven track record of managing debt. As long as you keep your credit card balance under 30 percent of your credit limit and you make your payments on time, a credit card can help you rebuild your credit. 

If you don't qualify for a regular credit card, consider a secured credit card. This type of card has a small limit and usually requires an initial deposit to open. 

Minimize New Credit Applications

Taking out a new credit card is a way to raise your credit score if you don't have credit. If you have bad credit for other reasons, you want to do the opposite: don't apply for credit cards or loans. Doing so can impact your score for up to a year. 

Build a Credit Age 

Credit scores can grow over time. If you're new to using credit it'll impact your score. You can build your credit age by becoming a user on a family member's credit card if they have good credit. Make sure that both parties are in agreement with this plan. 

Find Out More Ways to Raise Your Credit Score with Five Star Lincoln

When you know how to get a better credit score, your buying power increases and you'll pay less in interest rates and fees. That definitely includes auto loans. Want more tips to increase your credit score? The professionals in our finance department at Five Star Lincoln would love to help! Contact us for an appointment today, and we can help you find out how much car you can afford.Â