Simple and Effective Tips for Improving Your Credit Score
You're ready to apply for a loan and start shopping for cars at Members Auto, but you're worried that your credit needs work. While it is based on multiple factors, there are a few things you can do to quickly improve your credit score. Here are some easy tips for improving your credit score.
How to Improve Your Credit Score
1. Make All of Your Payments on Time
One of the easiest tips for improving your credit score is to make all your payments on time. This establishes a solid history of on-time payments.
2. Have Multiple Kinds of Credit on Your Credit Report.
For the best credit score, your credit history shouldn't consist of a single type of debt (e.g., all credit cards). Instead, use multiple types of debt products, like auto loans, credit cards, and lines of credit.
3. Lower Your Credit Utilization
When your credit cards and credit lines are maxed out, this hurts your credit. Ideally, you shouldn't use more than 30 percent of your available credit. However, reducing your credit utilization by any amount should improve your credit.
For example, assume that your total credit card balance equals $5,000. The credit limit for your cards is $10,000.
4. Don't Apply for New Accounts Too Frequently
Don't make it a habit of regularly applying for new credit. Each time you apply for new debt, the lender pulls your credit.
Contact our Credit Union to Learn More
To find out more about an auto loan with the credit union, contact Clark Country Credit Union at 702-228-2228. Not only does your credit union provide financing for vehicles, we also sell and buy them through Members Auto. We’ll help you save and get the lowest possible interest rate in addition to auto loan protections like GAP Coverage and Mechanical Repair Coverage.