If you are interested in buying a new or previously owned vehicle one of the first things to get in order is your credit report. Finding out there are dings on your credit report when you are trying to make a purchase is the worst time to hear that information. Many buyers are unaware of their credit history until they are sitting in the dealership’s finance office and get the news that it is less than stellar. These tips can help you find and fix all those dings on your credit report.
- Get a copy - Did you know that you are entitled to one free copy of your credit report each year? American consumers are entitled by law to a free copy of their report from Experian, TransUnion, and Equifax. Requesting your own copies of the reports does not affect your score like an inquiry from a lender does.
- Review details & score – Your free credit report may or may not include your overall credit score. The law that allows you to get a free report does not require the reporting agencies to release your actual score. If it is not included in your report, you can still get it. It is available for free from many credit card issuers.
- Identify any errors – Once you have gone over your credit report, identify any errors or negative information. Make a list of everything that needs your attention and start making progress toward fixing the problem areas.
- Solving the problems - Errors on your credit report can take time to get corrected. You may need to make phone calls to credit companies to dispute any false information you find on your report. This takes time and you are at the mercy of the customer service representative at the credit company.
- Raising the score – If you find your credit history is lacking, there are a couple of things you can do to help raise your score. You will need several months of making on-time payments on all of your accounts to raise your score. Also, don't start randomly closing credit cards in an attempt to raise your credit score. By doing so. this can potentially increase your credit utilization percentage and lower your score instead of raising it.
Of course, the best way to know your credit score is as good as it can be is to show a history of responsibility. Once you open a line of credit, make sure you are staying on top of it. Make payments in a timely fashion and never miss a payment or be late. You will get charged late fees and it will show up negatively on your credit history, reducing your overall score.
Let me help you find the perfect car along with the perfect financing. Contact me today!