How to Improve Your Credit Score

How to Improve Your Credit Score

If your credit score is causing issues with securing a credit card or car loan, turn to the finance experts at Truck Ranch with help figuring out how to get a better credit score. Learn the different ways to raise your credit score in this handy guide below, and feel free to give us a call if you have any questions.

Check Your Credit Reports

Beyond larger issues like identity theft, small financial mistakes can impact your credit score. So, if you’re wondering, “How to boost my credit score?” or additional ways to raise your credit score, start by getting your credit reports. To make sure the reports are as factual as possible, you can get your report from all three major credit bureaus: Experian, Equifax, and TransUnion. The Fair Credit Reporting Act entitles you to one free copy a year that you can find at AnnualCreditReport.com. 

Assess Your Debts

Write out all of your debts, so you can see how much you owe. There are two determining credit score factors:

• Your debt to credit ratio: How much available credit you have vs. how much is charged. It’s best to keep your credit card charges below 30% of the available balance every month. 
• The number of cards with balances: The more cards with balances, the lower your credit score will be. 

Create a Payment Plan

It’s recommended to attack your debts with a realistic repayment plan, and this includes any debts that are in collections. Eliminate small balances on cards first, then work at paying off your larger debt.

Open a Credit Card

Another reason for the low credit score is simply because you’ve never had a loan or credit card. Opening a card in the Hillsboro area could help you establish credit, as long as you keep it under the 30% balance and you pay your bill on time every month. If you don’t qualify for a credit card, think about applying for a secured credit card. These types of cards have a small limit that may require an initial deposit of up to a couple hundred dollars.

Minimize New Credit Applications

While we mentioned getting a new credit card or loan to improve your credit score, you need to watch how many credit cards you apply for. Lenders will do a hard inquiry of your credit, which can end up impacting your credit score for up to a year.

Learn More Ways to Raise Your Credit Score at Truck Ranch

Whether you need tips to increase your credit score or obtaining an auto loan with bad credit, the team in our finance department can help! Give us a call today!