If you have spent any time in the world, you understand that credit is a big part of everybody's lives, and it is important that it is good. If your credit isn't the best and you want to improve it, we have some advice to get you started on the road to better credit. The good news is if you are reading this, you already have the first thing you need, which is the desire and dedication to see improvements in your financial profile.
The First Three Steps
- Paying your bills on time is the first and most important step to building stellar credit. If you struggle with remembering due dates, signing up for automatic bill pay is a great practical step you can take to impact your credit in a positive way.
- Checking your credit report is also imperative because this is your first line of defense for eliminating errors that may be dragging your score down. It also gives you the big picture of how you are managing money, and where your weaknesses lie.
- Pay more than your minimum payments to reduce debt and lower your credit utilization rate. Everybody wants to be debt free, but it can be difficult to figure out ways to integrate money management into your habits. Rounding up is an excellent way to reduce debt, for example, if your minimum payment is $80, pay $100.
It Doesn't End Here
Evaluating your credit is a method that is used to determine your credit worthiness and risk, and to try to predict your future behavior based on your past financial habits. If you are making timely payments to a company that doesn’t report your activity, you can ask them to do so. This way, your positive behavior will be reflected in your credit profile. You may also ask the reporting companies to remove any delinquent payments.
Negotiating with creditors is key after your have made paying down debt a priority, but communicating with them about information they are reporting is not the only way to bring your score up. Your credit utilization rate, or how much of your available credit you are using is important as well. If you feel comfortable that you will use it responsibly, you can ask creditors to up your credit limit. However, this method should be used carefully.
How We Can Help Improve Your Credit
If you need a car, and are in the process of building your credit, or are just starting out with less than perfect credit, we can help. A good credit mix which includes the installment loans you take out when purchasing a car will give you a balanced credit profile. Get started today by filling out our quick and secure application, and Auto Credit Express will help you have a positive impact on your credit today.
