If you’re considering a car loan, you will likely already know that your credit score makes a huge difference to the cost and variety of loans available. Whether you have bad credit or just want to improve your score, we can help with every aspect of the loan.
We’ll begin with these five simple things you can do to begin improving your credit score right away!
The first thing you need to do is know your current position. That means checking your credit report, checking your current score and looking at your current debt.
Check your report for accuracy and correct any mistakes with the agency or the lender. Check your current score and make sure it accurately reflects your position. If it doesn’t check your report again for any mistakes.
Looking at your current debt will help you assess whether you can afford a car loan and perform the next step.
Pay most expensive debt first
Once you have a handle on your situation, you should prioritize all debt so you can pay off the most expensive first. That will usually be credit cards but store cards or other finance can sometimes be even more expensive.
Paying the most expensive first means you can lower the burden of interest faster. This in turn will help you pay all debt off quicker.
Close unused cards and accounts
Having unused credit cards and accounts around doesn’t impact your credit score much but this is about financial management as much as anything. Only having the accounts you use helps you keep on top of your finances.
In turn, this helps you recognize and manage debt and reduces the temptation to load another credit card or dip into another overdraft.
Set a monthly budget and stick to it
Debt can be accrued very easily simply by overspending a little each month. Once you have taken stock, you should be able to recognize this and do something about it. Set a monthly food budget. Set an entertainment or leisure budget and make sure you end each month in the black.
It won’t be forever and it shouldn’t be too painful. Once your debt starts going down, you should have more and more to play with each month.
Make your own coffee and lunch
One thing to watch when budgeting are those almost invisible expenses that are so ingrained we no longer notice them. One such expense is buying a coffee and lunch on the way into work.
You could easily save up to $10 a day or more just by making your own. Added up over a working year and you could have another chunk of cash to pay off one of those credit cards!