Why Its Good To Increase Your Credit Score For a Car Loan in Dallas Texas

Trading in your used car in Dallas Texas

There are always ways to improve on your credit score and I’m going to tell you why and how.

 

Five best ways to increase your credit score for a car loan in Dallas

 

It’s always a good idea to increase your credit score so you can get into that 800 club that’s where you really want to be.

 

  1. Payment history – You want to make sure you make at least the minimum payment each month on your credit card or car loan.
  2. Total debt owed – You want to be spending about 20-30% of what your credit limit is. So if you have a $10,000 credit card you want to only use about $3,000 on the card.
  3. The length of credit – This is big because the longer credit cards has been open the better for your credit. If you’re looking to close a credit card you need to look at closing a card that has been open long. Sometimes credit cards are good to have open for the purpose of getting a car loan in Dallas Texas. But don’t open the card and then buy a car. That won’t look too good.
  4. New credit – Which is also called “hard credit” you don’t want to open too much with credit if you’re going for a mortgage or a car loan. Like I said before you want to open a card but wait some time.
  5. Types of credit – Credit companies want to see that you have balance and not a ton of store credit cards. They will want to see that you have student loans; mortgage, car loans and that you can pay on them monthly.

 

What auto lenders want to see the most?

 

Really when it comes to a car loan the lender wants to make sure you haven’t missed a payment. If you have that can mean you might want to look at a co-signer for a while on your next used car in Dallas Texas.

 

But the closer you will be to the 800 credit score the better off you will be trying to get a loan. If you’re in the 800 credit club there are multiple benefits plus the 800 credit score is something to be proud of.

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