How to Get a Better Credit Score

Is your credit score making it difficult to secure a credit card or find affordable terms on a car loan? If you are wondering how to get a better credit score, turn to the experts at Sterling Acura of Austin. Find out ways to raise your credit score today with our list of tips. Contact us today with any questions.

Tips to Increase Credit Score: Check Your Credit Reports

Sometimes your credit score may not be where it should be through no fault of your own. It could be an issue like identity theft, but another culprit could simply be a mistake. So when you ask how to boost my credit score, or ways to raise credit score, make sure the information on your reports are correct. You will want to obtain reports from all three major credit bureaus: Experian, Equifax, and TransUnion. The Fair Credit Reporting Act entitles you one free copy a year that you can access at AnnualCreditReport.com.

Assess Your Debts

It is also important to be honest about your debts so you can get an accurate assessment of where you are at financially. Two factors that play a role in determining your credit score include:

• Your debt to credit ratio: How much available credit you have vs. how much you have actually charged. In an ideal situation, your credit card charges should remain under 30% of the available balance every month.
• Number of credit cards with balances: If you have several cards that have a balance, it can lower your score.

Create a Payment Plan

If you have a lot of debt, develop a repayment plan that includes tackling debts in collections, eliminating small balances on cards, and working to pay down larger debts.

Open a Credit Card

Your credit score may be low simply because you have yet to establish credit. Opening a card in Buda can help you build credit, but keep in mind that the balance should remain under 30% and that you need to pay your bill on time each month if you want to begin building credit. An easy way to boost your credit score is to choose one recurring monthly charge and have it paid with your credit card, making sure you set the money aside to pay the balance off when the bill arrives.If you are unable to obtain a regular credit card, a secured credit card could be a good option for you. This type of card has a small limit and in most cases, a deposit of up to a few hundred dollars is necessary to open the card.

Build a Credit Age

It takes some time to build your credit score. If you are starting today, one way to improve or add to your history is to become a user on a family member’s account. Just make sure that they have paid their bills on time because that will start to reflect positively on you. Both parties need to agree on who actually gets to use this line of credit and how payments will be taken care of.

Minimize New Credit Applications

While there are some cases where a new card or loan can help to improve your credit score, you do not want to apply for too many different credit cards. When lenders do a hard inquiry of your credit, your score can be affected for as long as a year.

Find Out More Ways to Raise Credit Score at Sterling Acura of Austin

If you would like to know more about how to get a better credit score, the team at Sterling Acura of Austin would be glad to provide tips to increase credit score. Contact our Finance Center today to learn more about credit, loan refinancing, and more. Our credit experts can walk you through the process and answer any additional questions in Austin.