Your credit score influences a lot more than just auto loan rates. It can influence where you rent, how high your insurance is, how expensive credit cards are and even whether you get a job offer or not. So it is generally a good idea to improve credit score and learn to maintain it.
That’s what our Oakville auto loan team wanted to discuss today. How to improve your credit score and keep it high.
Here are a couple of quick ways to help improve your credit score:
Use a credit card for daily expenses to improve credit score
Credit cards are not evil. They can be very useful tools to improve credit score if you use them right. Using a credit card for gas, groceries and other daily expenses is one way to use them right.
Pay off your balance in full every month and you’ll avoid the majority of the interest charges too!
Ask your landlord to report your rent to credit bureaus
If you rent in Canada, asking your landlord or lease company to report your rent payments to the credit bureau can help build a positive picture. Not all landlords will do it but it’s worth asking.
If a lender uses an Extended View Credit Score, they get to see everything that’s happening in your financial life. Seeing rent always being paid on time can help their decision.
Use secured loans
Secured loans are useful for those with bad credit and can help build your credit score and payment history. Use the loan to pay off all your other debts and use it like a consolidation loan. Create a positive payment history by always paying on time and your credit score will gradually improve.
Combined with a credit card and landlord notifications, a secured loan could help build your credit score after just a couple of months.
Maintaining a good credit score
Once you have reached a decent credit score, it’s up to you to keep it that way. If you never miss a payment, don’t over-extend yourself and keep debt manageable, your score should remain roughly the same. You may see occasional dips of 10-15 points here and there but those are nothing to worry about.
Staying out of debt is about control and willpower. Controlling your finances can be as simple as knowing what’s coming in and what’s going out and making sure you end the month in credit.
Willpower is about avoiding impulse buys, resisting the urge to max out the credit card on Black Friday and living within your means.
It isn’t easy and we won’t pretend it is. We all struggle with spending and we all suffer temptation at one time or another. You just have to remember the bigger picture. Staying out of debt, staying in the black each month and maintaining what is now a good credit score!
If you want to use that good credit score for an Oakville auto loan, contact our team. We would be only too happy to help!
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!