Is your credit in a scary situation? Whether you need to finance a vehicle, a family vacation, or a certain jolly old fellow’s visit to your house, it can be hard to do when your credit’s suffering. Luckily, we have some credit tips you can use to move toward a brighter credit future.
4 Tips to Keep Your Credit Out of the Grave
Everyone has a credit situation that’s as unique as they are, but some common themes can plague all credit users. Here are a few credit tricks and treats to ease your woes:
- Don’t be a credit ghost – When you don’t have any credit to speak of, you’re what’s called a “credit ghost.” It can be difficult to build credit because lenders don’t often jump at the chance to be the first to extend someone credit, especially on a large purchase like a car. If you have no credit or need to build up a thin credit file, try starting with a secured credit card or a credit builder loan. If a vehicle is a must, make sure you’re working with the right type of lender for your situation.
- Beware of zombie debt – Did you know that past debt can come back to haunt you? It’s true. Debt that you may not even remember can be resurrected by collection agencies and affect your credit once more. This can happen when a debt has fallen off your credit reports, or with a debt you no longer owe. Information such as payments can get lost in transition when debts are sold (many times to many third-party collectors). It’s vital to keep good records when paying debts. If you can’t remember and make a payment on a zombie debt, you risk reactivating this debt and it remaining on your credit reports for another seven years.
- Don’t kill old credit cards – Do you have a credit card that you’ve had forever but don’t really use? Many people assume that in order to clean up their credit they should axe the cards they don’t use anymore. In reality, this could bring their credit score down instead of up. One factor used to determine your credit score is the length of your credit history, which looks at the age of all of your credit accounts. Keeping old cars open and in use is a wonderful way to maintain a strong credit history. Try using the card for something small that you can pay off each month, like gasoline or trips to the grocery store.
- Frankenstein your credit repair – It’s OK to be like Dr. Frankenstein when you’re working on repairing your credit. There are several tricks that can all work together to help you put the most life back into your credit profile. Credit repair works best when you’re doing what’s best for your credit situation, so make sure you know your credit score, what’s on your credit reports, and which areas of your credit need the most attention.
Use a Car Loan to Calm Restless Credit Spirits
Did you know that one of the best ways to begin working on credit repair is with a bad credit auto loan? A car loan allows you to open a new line of credit, adds installment credit to your credit mix, and gives you the opportunity to improve your credit by making on-time payments for a long time. All these factors can help lead to an improved credit score.
Lenders that work with troubled credit aren’t a myth – they’re called subprime lenders, and they work exclusively through special finance dealerships. If you’ve tried to find a bad credit auto loan in the past, but found approval to be as elusive as Bigfoot, you may not have been working with the right dealers.
At Auto Credit Express, we work with a nationwide network of special finance dealerships that have the lending resources you’re looking for. As long as you start out by working with the right type of lender for your credit situation, you should have a fighting chance for getting approved for a car loan.
To have your best shot at credit repair while getting the vehicle you need, just fill out our no-obligation auto loan request form, and we’ll get to work connecting you with a local dealer. Don’t wait for your credit to become a nightmare – get started right now!