Done responsibly, buying on credit can provide numerous benefits, including
helping you obtain favorable rates on loans. A convenient way to purchase
larger items like vehicles, major appliances, and real estate, it also often
provides protection on purchases.
Most lenders review your credit rating to determine your level of risk as a
borrower. If your credit score isn’t as high as you’d like it to be, or if you
have a bad credit rating, there’s no better time than now to take steps to
improve it.
5 Easy Ways to
Improve Your Credit
Do you have big financial plans for 2023? Is one of them to buy and finance a new
vehicle? If so, you need a credit score that reassures lenders you
can pay back what you borrow. A good credit score also makes borrowing more
affordable. For instance, if you maintain a credit score of 700 rather than
650, you could potentially reduce the interest you pay by several percentage
points.
Here's what to do to get your credit score in its best possible shape as
quickly and easily as possible.
If you went a little (or a lot) overboard in your holiday shopping last
year, try to eliminate high balances that are costing you in interest and other
fees. Ways to do this include making
a balance transfer to a card with a lower interest rate,
consolidating debt with a personal loan, and borrowing money from family.
Hard inquiries on your credit report can drop your score by up to five
points, stay on the report for up to two years, and impact your score for 12
months. Avoid applying for too many credit cards in a short time and you’ll
lessen the impact on your credit score.
When a credit card company increases your credit limit, your credit score
benefits from the lower debt and credit utilization ratio. Just don’t
immediately run up your charges to the new limit, or you’ll be right back where
you started on your credit rating!
Traditionally, credit reports have not included on-time payments of rent,
utilities, and streaming services. Experian, one of the three major credit
bureaus, now offers
an option for consumers to report those payments if they’re made
from their linked bank account. Similar services are available from third-party
companies but be sure to weigh whether the fees they charge are worth it.
Financing a car can also help build your credit score, assuming you make
your payments on time. Rocky Mountain Motor Cars offers convenient finance
programs that let you get on the road, even if your credit score is less than
perfect. As one of the most trusted car dealerships in Salt Lake City, we’re
here to make your car or truck-buying experience as convenient and hassle-free
as you hoped it would be!
Learn more about the Rocky Mountain Motor Cars vehicle financing difference
by contacting us online
or filling out our online
credit application.