Improve Your Credit

When it comes to purchasing a new car, a good credit score is one of the most important weapons you can have in your arsenal. That’s because more than 85 percent of American consumers rely on financing to obtain a new vehicle, according to Experian’s 2016 State of the Automotive Finance Market report.

Bad credit can lead to no financing. Good credit, however, shows lenders that you are reliable when it comes to making payments on time, which leads to a better chance of securing a loan. Besides that, a better credit score usually means a lower interest rate.

A simple online search will reveal many sites where you can check your credit score before you begin your search for your dream car. If your credit score is less than perfect, there are some simple ways to improve it. A good rule of thumb is to consider your credit score as important as your driving record. Both can greatly improve or hinder your everyday life.

Lower Your Credit Card Debt

The 2015 American Household Credit Card Debt Study found that the average American household carries a credit card debt of $15,762. The easiest way to cut down on your credit card debt is to start with the smaller outstanding balances.

Once you resolve a smaller debt, start applying that money toward a card with a larger balance. Obviously you’re not going to overcome your debt overnight, but by cutting out smaller debts, the extra money will make your larger debts look less intimidating.

Pay Your Bills On Time

Today’s technology gives us a huge advantage in the struggle to pay bills on time. With nearly everything being electronic, we are able to have our creditors take payments out of our bank accounts automatically on the due date.

Sometimes it is too easy to justify spending the electricity bill on something frivolous and trying to make up for it the next month. This is a downhill battle. Your credit score will thank you if you make an assertive effort to make sure your bills are paid first.

Properly Use
Your Credit Card

An active credit card shows lenders that you are in control of your credit. How you use credit cards can be the most beneficial or detrimental influence on your credit score. The trick is to pay your balance off in full before your due date.

A month’s worth of gas or groceries that you charge to your card can be a great help to your overall score if paid in full on time.