How to Improve Your Credit Score
If you are trying to finance your vehicle with Ken Garff Ford of Greeley and need to improve your credit score, we have some tips that can get you into the buyers seat.
A simple increase of only 80 points could be the difference of getting the financing you need at Ken Garff Ford of Greeley to drive away in the car that you love. Credit scores help determine the interest rate of your loan and in the end the payment of your vehicle too. By improving your credit score you can lower your monthly car payment potentially saving you hundreds of dollars over the course of your loan.
Pay Your Bill On-Time
Every time you make a late payment on an account it lowers your credit score. Paying bills on-time allows your credit score to rise naturally.
Pay More than the Minimum
Credit cards charge late sums of interest on balances. By paying more than the minimum you eliminate the debt but also contribute to lower the amount on which you are charged interest. In the end, you keep more of your money than the credit card company.
Never Skip a Payment
Credit cards companies tack on interest and penalties when you skip a payment. Making a payment, no matter how little, not only shows good faith to pay off the debt but keeps your account from falling into collection as well. Paying a small amount less than the minimum is better than paying nothing at all.
Keep All Credit Accounts Open
You might be tempted to close an old credit account that has a zero balance, but think again, Creditors are interested in how long you have had credit with each creditor so an old account with a zero balance plays to your favor. If the account does not have an annual fee, keep it open. Destroy the card so you won’t be tempted to use it, but leave the account open.
Watch Your Limits
As a general rule, your credit score is figured by your balance versus your percent of available credit. Creditors consider 35% to be the magic ratio so keeping your monthly balances low is the key. If you take out of $1,000, keep your credit card balance under $350 or 35% of the total.