If you are tired of driving clunker cars and want something reliable with modern features, the best way to do that is with a car loan. However, if you have struggled with your credit in the past and you want to boost your credit score before you apply for a car loan, we have a few tips. When you are ready to apply, we can help you finance at Tropical Ford.
Check Your Credit
The first thing you need to do is to check your credit scores and reports. You can get a free credit report every year from each of the credit reporting agencies. Look these over and check for any errors. If you find any problems, work to get them resolved as quickly as possible.
Pay On Time
The most important factor in improving your credit is paying your bills on time. Any payments over 30 days late can have a major negative impact on your credit.
Get Utility Payments Added to Your Credit
If you always pay your cell phone and other utility bills on time, you can consider getting those added to your credit for a little boost.
Pay Off Debt
Once you are getting all your payments in on-time, you should start paying down your debts as quickly as you can. Consider using the “snowball” method where you only pay the minimum on all but one debt. Add any extra cash you have to that one debt until it is paid off. Then add all of that payment to the next debt, and so on, like a growing snowball.
Keep Accounts Open
While loan accounts will automatically close when paid off, you should keep any credit card accounts you have open even when you pay them off. An open account you don’t use will give you a better credit utilization ratio. If you are worried about racking up debt again, you can always cut up the card.
At Tropical Ford in Orlando, we can help you with financing so you can afford your next vehicle without breaking the bank.