Your credit score is an important factor in securing a good car loan—or getting any car loan at all. Is your credit score in need of work? Here are a few ways you can improve your credit score and get a better car loan.
Pay off balances
This is easier said than done, but try to pay off credit balances wherever possible. This probably means starting with your credit cards, which have insanely high interest rates. Once you have paid them off, only use them when you know you can pay them off every month. Paying off your credit cards on a monthly basis does wonders for your score.
Keep the utilization low
Though your credit limit on a card may be $1,000 a month, that doesn’t mean you have to spend that much. Doing so could be hurting your credit. Try to keep the utilization under 30%. For a $1,000 credit limit, that means charging $300 or less each month.
Pay bills on time
Paying your bills on time is the easiest way to maintain a good credit score. Auto pay can be a great way to make sure you don’t miss a payment, as long as you keep enough money in your account.
Have questions about vehicle financing? Contact Pfeiffer Plainfield Used Cars.