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.
- Payment history – You want to make sure you make at least the minimum payment each month on your credit card or car loan.
- 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.
- 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.
- 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.
- 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.