Steps To Take To Improve Your Credit Before Buying A Car
Posted on: 24 April 2017
When you're getting ready to buy a used car, finding a make and model that suits your budget will likely be on your mind. You should also give some consideration to your credit score, which you can check through any number of online services and mobile apps. If your credit score is low, it may be difficult to buy a vehicle from a reputable dealer — and you don't want to be forced to give your business to a dealer who is less than reputable. Instead, start working on repairing your credit. While you can't boost your credit score overnight, some careful attention to your finances can raise your number to a favorable level and help you get approved for financing at the dealership. Here are some tactics that you can use.
Pay Down Your Debt
One of your first priorities should be to identify what you owe so that you can start paying it down. For example, if you constantly run a balance on your credit cards, strive to not only make the minimum payment each month, but also work toward eliminating this balance. You might have to get creative to do so — perhaps you'll need to take extra shifts at work, for example. In doing so, you'll be improving your credit score and getting closer to being able to buy a vehicle.
Take Charge Of Bill Deadlines
Your credit score can climb unnecessarily when you don't pay your bills on time. While it might be easy to occasionally forget about a bill, take charge of your deadlines to help improve your credit score. Write the date of each bill on the calendar on your fridge and consult it daily, or set up notifications on your smartphone so that you're reminded the day before and the day each bill is due.
Cut Down On Spending
Many people will poor credit find that they spend above their means. It's easy to make a large purchase on a credit card, but less easy to pay off the balance when the time comes. By cutting down on your spending, you'll have more money in your pocket that you can use to avoid taking out loans and being late with payments. Making this change doesn't need to seem like a sacrifice — instead, when view it as part of the process of getting closer to buying a used car, the changes you're making will be worth it.
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