Ways to Improve Your Credit Score

Credit Scores

If you are looking to secure a car loan in Santa Cruz, but aren’t sure if your credit score is quite up to par, then consider these tips to increase your credit score from Santa Cruz Toyota. Even when you are looking to finance a car with bad credit in Watsonville, the team at Santa Cruz Toyota can help you find the right car and payment plan for your needs! Learn how to get a better credit score today!


How to Boost My Credit Score: Learn Your Credit Score

If you want to get a higher credit score, the first step is to know what your credit score currently is. While large-scale issues like identity theft can impact your credit score, smaller mistakes can also cause issues. You should get a credit check from one of the major credit bureaus — Experian, Equifax, and TransUnion — and ensure that everything looks factual. The Fair Credit Reporting Act allows you to get one free credit check copy a year from AnnualCreditReport.com.

How to Boost My Credit Score: Learn More About Your Debts

Another one of the ways to boost credit score is to get a better idea of what you owe, and start by listing out your debts. Here are two factors that impact your credit score:

  • Debt to credit ratio: This means the amount of credit vs. how much you’ve charged on your credit card. When possible, try keeping your credit card charges under 30% of your available balance from month to month.
  • Amount of Cards with Credit Balances: The more balances you have on more credit cards, the lower your score will be. It may be tempting to test out the benefits of many cards, but try not to go overboard and harm your credit score.

Start With a Payment Plan

One of the best actionable ways to raise credit scores starts here. Getting on top of your debt is easiest by first forming a payment plan. You can start by tackling debts in collections, then eliminating small balances on your credit cards, and continuously but slowly chip away at larger debts every month. While getting rid of debt can seem impossible, having a manageable plan is a great place to start.

Get a Credit Card

One of the surprising tips to increase credit score is opening a credit card. So, how to get a better credit score if you’ve never had a loan or credit card before, is to open a credit card. When you start establishing credit, getting a new vehicle in Watsonville can become closer within your reach. Meanwhile, keep in mind the above advice and keep your balance under 30% while paying your bill on time each month. One of the primary ways to raise credit score is to pick one recurring monthly charge and pay it with your credit card. If you still don’t qualify for a normal credit card, a secured credit card can be an option for you.

Limit Your Applications for Credit

A new card or loan can help improve your credit score, but you will need to limit the applications and accounts you open. Simply applying for every available credit card can cause issues in the eyes of a lender, which can actually impact your credit score for up to one year.

Learn More Tips to Increase Credit Score

After getting a better idea of “how to boost my credit score in Santa Clara,” you may still have questions about your finances. If you are curious about ways to raise credit score numbers, contact our Finance Department! We can get you on the right finance plan for your credit situation. Feel free to contact us online to get the process moving or visit us in Capitola!

 

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