How to Improve Your Credit Score

If you have poor credit, you already know that a low credit score can make it difficult to secure a credit card or auto loan. Are you ready to learn how to get a better credit score? If so, read on. Here the finance team at Welborn GMC Of Cartersville shares some helpful tips to increase your credit score. If you have questions, feel free to reach out to us. We’re here for you and proudly service the greater Cartersville area.

Review Your Credit Reports

Everyone makes mistakes, even credit reporting agencies. Mistakes in your credit report can cause many hassles for you around %%target_city-1%%. So, one of the best ways for how to boost your credit score is to clear up any mistakes that are on your credit report. Start by obtaining your credit reports from all three major credit bureaus: Equifax, Experian, and TransUnion. The Fair Credit Reporting Act allows you to get one free copy per year, and you can obtain it at AnnualCreditReport.com. 

Assess Your Debts

Create a list of all your debts to understand what you owe. Two things that significantly impact credit scores are:

• Your debt to credit ratio: The amount of available credit you have available vs. how much you have used or charged. Ideally, you should try to keep your credit card charges under 30% of the available balance each month. 
• The number of credit cards with balances: The more credit cards you have with a balance, the lower your score will be. 

Create a Payment Plan

Another way to raise your credit score is to tackle your debts with a focused repayment plan. Start with any debts in collections and pay them off as soon as possible. Then, begin eliminating small balances on your cards, and lastly, attack your larger debts. 

Open a Credit Card

Here is another tip to increase your credit score. If you have never had a credit card or haven’t had one in a long time, apply for one. Opening a card in Rome will help you establish credit. Just be sure to keep the balance below 30% of your available credit and pay your bill on time each month. A simple way to raise your credit score is to pick one recurring monthly charge and pay it with your credit card. Then, pay off the balance each month as soon as the bill arises. If you can’t qualify for a regular credit card, apply for a secured credit card, which means you may have to make an initial deposit of up to a couple hundred dollars. 

Minimize New Credit Applications

Be aware of the number of new credit applications you submit and try to keep them to a minimum. Too many credit apps in a short period can hurt your credit score. 

Find Out How to Boost Your Credit Score at Welborn GMC Of Cartersville

Now that you know how to get a better credit score, if you need more advice, turn to the finance specialists at Welborn GMC Of Cartersville, near Acworth and Canton. From obtaining an auto loan with bad credit to tips for saving for a down payment and more, our finance team is happy to help. Don’t hesitate to reach out to us today and let us know if you enjoyed these tips to increase your credit score.