Tips for Improving Your Credit Before Buying a Car
Tips for Improving Your Credit Before Buying a Car
Get your next vehicle at Temecula Chrysler Dodge Jeep RAM
Everyone wants to get a good deal on their car loan, but if you have bad credit, things can get a little complicated. However, if you are somehow able to put off car shopping for a while, there are specific steps you can take to build up your credit before buying your next vehicle. You need to be aware that your lender will assess your ability to afford certain loans by computing the debt-to-income ratio, and your credit rating will play a significant role in the interest rate you will get for your car loan. Therefore, you will want to get your credit in top shape before applying. Below you will find ways to get your credit top shape before you get your next vehicle here at Temecula Chrysler Dodge Jeep RAM!
If there are Errors on your Credit Report, Dispute Them!
You can start the process by getting a free copy of your credit report. Once you get it, make sure that you thoroughly and make a note of any errors that you notice that will drag your credit score down. Next, you can file a dispute by mail, phone, or online with the different credit bureaus, Experian, TransUnion, or Equifax, to report inaccurate info. Once you file your dispute, the credit reporting agency will then reach out to the creditor or the lender, who will further investigate the discrepancy. If the information in the dispute can't be verified, it will be removed, and your score could improve.
Pay Bills by the Due Date
Your payment history will account for around 35 percent of your FICO score, and if your credit card or loan is more than 30 days past due, the delinquency will likely be reported, and your credit score will take a hit. On the other hand, if you make your payments on time or make payments toward that debt that is on your credit report will improve over time. It is also essential to bring any past-due accounts current to avoid any further activity and damage to your overall credit score. Improving your credit score is important to getting your next car loan.
Lower Credit Card Balances
Overall, the FICO credit-scoring model will favor customers that responsibly manage their debt. Keep in mind that the amount of debt that you owe is the second-largest component that makes up your credit score. In addition, your credit utilization or the percentage of your credit line will also play a significant role in determining your score. Your lender will want to see your credit utilization at or below 30 percent. If you find that yours is higher, you need to work towards paying it down to raise your credit score and qualify for a competitive interest rate or your next car loan.
Don't Apply for New Credit
Every time you apply for credit, then a hard inquiry will be generated, which can end up dropping your credit score by a couple of points. While the impact will be only a temporary setback, many different inquiries in such a short period will end up hurting your credit score. The only way you will not see a score drop is if you are shopping for an auto or mortgage loan within a period of two weeks. It's vital that you don't apply for a long list of credit items before you look into getting a car loan. It will be good for you in the long run!
Get a Car Loan here at Temecula Chrysler Dodge Jeep RAM
If you are looking for a place to get a car loan with a team of people that will work with you, then check out our finance department here at Temecula Chrysler Dodge Jeep RAM! Our team will go over all of your options and get you the loan that works best for you. Then our sales team will show you our entire inventory of new and pre-owned Dodge, Jeep, and Ram vehicles that are all available to be test driven. One of our team members can even accompany you on the test drive so you get the full feel of all of the features. Even if you can't make it to our dealership right now, you can still check out our entire inventory here on our website!
Plus government fees and taxes, any finance charges, any electronic filing charge and any emission testing charge. Prices include $85 dealer doc fee. Does not include optional accessories of $1,795 Mopar EVTS Electronic Vehicle Tracking System, $599 Forever Start Lifetime Battery, and $499 Clear Shield.
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