Tips on how to fix your credit
Repairing damaged credit can be a challenging stressful process, but with a vehicle loan from Smart Motors, it doesn’t have to be! We help you rebuild your credit by reporting to Trans-union.
There are a lot of companies that offer programs that are usually pretty costly to help you repair your credit, but if you follow these professional tips, you will be on the road to repairing your credit!
1. Check your credit report
There are free options to view your credit report that do not require you to purchase anything. Checking your report at least once a year is very important. You can dispute inaccurate information, and have it removed from your report, which will improve your score.
2. Be aware of your spending limits
Using credit cards regularly and paying them off is a great way to improve your score. Experts recommend that you try to keep the balance on your credit cards under half of your total spending limit. If you do not pay it off monthly, at least try to make payments larger than your minimum due. Try to never max out your cards, that can hurt your score, especially when trying to rebuild. If you don’t have a credit card, consider applying for a secured card. Use it for small purchases and pay it off monthly.
3. Make all payments on time
Mark your calendar, use a budget app on your phone, or do whatever it takes to make sure you are not late on your monthly payments. Late payments can cause your score to drop quickly. At Smart Motors, since we report to Trans-union, we can actually help build up your credit when it comes to making all of your monthly payments on time.
4.Keep in mind negative items effect your credit much faster than positive items
It can be frustrating when that one payment slipped through the cracks causing you to pay it late, and you see your score drop a few points, yet when you made all the other 3 month payments on time you saw no change. Negative items always have a faster effect on your score than positive ones. It is a slow uphill climb to improve your score, but if you are patient, and work hard to follow all these tips you will see an improvement!
Interested in learning more ways to improve your credit or how you apply for a loan with Smart Motors?
Please fill out the contact form and one of our agents will contact you within 48 hours!