When purchasing an automobile, one of the most important things you will come across is your credit score. A bad credit score can keep you from reaching your goals and purchasing the car you want. So how do you improve your credit score? Let's take a look at some things that will help.
1. Pay your bills on time. Being late or missing payments has a huge effect on your FICO score.
3. Paying off collection accounts will not remove it from your score. It takes seven years for collection accounts to drop off your credit score.
4. If you have trouble paying your bills, talk with your creditors. Be honest and open and be willing to work with them to find a resolution.
5. Keep balances low on credit cards. Large amounts of revolving credit debt will kill your credit score.
6. Pay off debt rather than move it around. Owing the same amount but on fewer open accounts will lower your score - pay debt off regularly to get the best score.
7. Don't close unused credit cards to raise your score - this approach will actually lower your score.
8. If you are just starting out, don't open too many accounts at once - a rapid buildup in accounts will make you appear risky.
9. It's ok to check your own credit report! Look for items that are incorrect or falsely attributed to you!
10. Manage your credit cards responsibly! Keep low balances and make timely payments.
The main thing is to be smart with your money. Keep track of how much you earn and how much you spend. Don't overextend yourself or put yourself in a position where your credit can get out of control.
Use a budget or a spending plan to manage your money. Be aware of your expenses! If you need help, talk with someone you consider wise with money - a family member, close friend, or a professional counselor. Be proactive - it's better to get control today than out of control tomorrow.