A good credit score isn’t mandatory to get a car loan in Milton but it helps to get you a decent interest rate. We can provide a range of competitive bad credit car loans but if you want to improve your score to access a wider range of lenders, you can.
You just need to follow a few simple steps and have a little patience.
It will take between 6-18 months to significantly improve your credit score if you follow some of this advice.
Repairing your credit score
The time it takes to repair your credit score depends on why it’s low in the first place. Some situations like bankruptcies will be with you for a while. If that’s the case, we work with a few lenders who offer car loans to those who are bankrupt.
If you have just missed payments or have a lot of debt, those things are much easier to manage.
Check your current credit score
Before we can go about improving a credit score, we need to know what it is. Check your score and make a note of it. Check your whole report to make sure your situation has been accurately recorded.
Take note of all debts you currently have and check your report for errors. While correcting any mistakes can have a minor impact on your score, every increase is welcome!
Tackle the cause
If you know why your credit score is low, the first thing we need to do is tackle that cause.
Whether that’s paying off debts or not missing any more payments, we can take action right away to help manage the situation.
If you have outstanding debt, list everything together and order that list so the highest interest rates are at the top. Aim to pay off those debts first. Then work your way down the list until everything is paid off.
Try to never miss a loan or debt payment, ever. Your payment history makes up to 30% of your credit score so can have a huge impact on it.
Set up automatic payments or reminders to keep you up to date. If you’re having trouble, talk to the lender in question. They will have several tools at their disposal to help you make payments. It’s in their interest to use them, otherwise, they could lose the money.
Set a budget
Living outside one’s means is a common way people get into debt. Create a household budget outlining your income and outgoings. If there is too much going out or you live in your overdraft, make savings wherever possible.
If things are tight already, you’re going to have to make some hard choices between what to cut back and for how long. Whatever you do, just make sure to not miss those payments otherwise all your good work will be for nothing.
Use your credit card
It might seem strange to recommend using your credit card more to increase your credit score in Milton, but it’s true. As payment history is so important, you can use a credit card to begin adding to that history.
Use your card for gas or groceries and make sure to pay it off in full each month. That way you get to use the card without paying any interest and build a positive payment history at the same time.
We won’t pretend it’s easy to get on top of your credit situation but it is definitely possible. These ways are just some of the many techniques you can use to do it.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!