It is definitely to your benefit to improve your credit score before you attempt to buy a car. If you have a higher credit score, then you are seen as less of a lending risk. Accordingly, most banks and credit unions should be more willing to give you an auto loan with the most favorable terms.
You can often get bad credit car loans, Salt Lake City residents, but they might not come with the most favorable terms. That is why you should look into taking the following actions before you try to purchase a vehicle for personal use.
Pay Off All Outstanding Credit Card Debt
One of the best things you can do if you want to raise your credit score before buying a car is to pay off all of your outstanding credit card debt. If you have a couple of cards, or even a few, the more of a balance you are carrying on them, the worse it is for your credit score.
Paying off this debt could take a little time, but it’s usually doable if you’re frugal. By staying away from any unnecessary expenditures and only buying things you absolutely need, you should eliminate credit card debt and raise your score bit by bit.
Open Up New Credit Cards
You can also open up new credit cards. By doing so, you increase the amount of available credit you have. If you don’t use that credit, but you have more of it available, that makes your credit score tick up.
Nobody needs 10 credit cards, but having three or four is perfectly reasonable. Getting one from different entities, such as Visa, Mastercard, and American Express, is a reasonable thing to do.
You will not just raise your credit score if you stick to only purchasing necessities. You will also have an option to pay with a different card if you happen to be at an establishment that doesn’t accept one of the three main ones.
Dispute Any Credit Report Inaccuracies
You can also look closely at your credit report from the main credit reporting bureaus and dispute any inaccuracies with them. Some people seem to feel like credit reporting bureaus are not capable of making mistakes. That’s not the case, though.
An error on your credit report can cause a meaningful drop in this all-important number. By contacting the credit agency in question and informing them that there’s inaccurate data on that report, you can get them to make the necessary adjustments. They should raise your score as a result.
Pay Your Bills on Time
Making sure that you always pay your bills on time is another simple way you can raise your credit score before trying to buy a new car. If you make sure to do this for several months before you head to a car dealership, you’re establishing that you’re dependable with your payments. In addition to causing your credit score to rise, you’re also sending the signal that you’re not a lending risk.
