How to Get a Better Credit Score

Among the common questions, the Finance Centre team at MacPhee Ford fields include “How to boost my credit score?” and “How to get a better credit score?” A good credit score is important for many things in life, which include buying a new or used car near Halifax. Whether you want to start browsing vehicle inventories soon or have already found your favourite new car, you might need to improve your credit score. There are numerous ways to raise your credit score, many of which take little time or effort. Check out our tips to increase credit scores today, and let us know if you have any questions! Our team is here whenever you need us.

How to Boost Your Credit Score

The higher your credit score, the lower your loan interest rate will be! Check out our top tips to increase your credit score and buy the car you can’t wait to drive in Bedford!

Review Your Credit Reports

Identity theft is not the only potential issue on credit reports. Other mistakes can happen, such as a utility company claiming you made a late payment. Since errors reduce your score, inspect your reports from TransUnion and Equifax carefully. If you find one or more mistakes, alert the respective bureau immediately.

Consider Your Current Debts

Knowing exactly what you owe to various creditors helps you create a workable repayment plan. We recommend keeping the following factors in mind:

• Debt to Credit Ratio: Compare your available credit to what you have charged. The ideal percentage for a high credit score is charged under 30% of monthly available balances.
• Cards With Balances: How many cards with balances do you have? A credit score decreases if there are multiple cards with balances.

Add Yourself to a Family Member’s Account

If a family member pays their bills on time every month, ask about adding yourself to one of their credit accounts. Ensure you use only the line of credit provided and make payments accordingly to avoid confusion.

Make a Payment Plan

Creating a repayment plan helps you pay off your debt as quickly as possible. It is generally best to work on lowering one debt at a time; you can also transfer high balances to any cards you have with lower interest rates. Any card with an introductory 0% interest rate is another balance transfer option.

Open a Credit Card

If you do not have a credit card, now is the time to open an account! No loans or credit cards are additional reasons for low credit scores. Opening a credit card account and making payments on time improves your credit score, especially if you keep the balance low. A secured credit card with a low limit is another option if you do not qualify for a standard credit card.

Minimize New Credit Applications

Our tips to increase your credit score also include limiting the number of new credit applications. While opening a card is helpful if you do not currently have one, an excessive number of new applications is detrimental. Credit card companies perform hard inquiries on potential new customer accounts, causing scores to lower.

Learn More Ways to Raise Your Credit Score at MacPhee Ford

Now you know how to get a better credit score! For more helpful score-boosting tips, talk to our Finance Centre experts today. Call 902-434-7700, contact us online, or stop by our dealership near Sackville to get started. For additional related reads, review how financing a car works and how to get bad credit car financing!