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Improve Your Credit With These 5 Expert Tips

by - Posted 1 year ago

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.

  1. Pay Off Holiday Debt

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.

  1. Resist Applying for Credit Too Often

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.

  1. Ask for Increased Credit Limits

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!

  1. Add Non-Traditional Payments to Your Credit Tracking

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.

  1. Make On-time Car Payments

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.