Easy Tips to Help Improve Your Struggling Credit Score
If you find yourself in a tough financial situation, we understand how difficult it can be to secure the necessary financing for a large purchase like a car. Few lenders are willing to take you on as a risk, and the few dealerships that provide financing also accompany high-interest rates to all of their deals. At the end of the day, it seems like there’s nothing you can do. Fortunately, there’s a car-buying alternative in online.cars, a convenient new way to purchase your car and secure that sought-after financing.
Of course, while that’s all well and good, you still may be looking for ways that you can improve your overall score. While completing payments in a timely manner is certainly a good step, it still won’t lead to a drastic turnaround. Below, we’ve explored several tips that you can keep in mind as you’re looking to improve your credit score. That way, in several years time, you won’t be forced to pursue a bad credit car loan in Cincinnati…
Tip #1: Be Aware
This may seem rather obvious, but you’d be surprised how many consumers fail to fully inspect their monthly bills and statements. While late payments obviously have a huge influence on your credit standing, your “percentage used” is also an important factor. Many consumers tend to max out their credit cards and subsequently slowly pay off the debt. This certainly isn’t the optimal route, and companies will dock you for capitalizing on this “strategy.” The only way you can fully understand how much of your available credit you’re actually using is by monitoring your statements.
Of course, we understand that some consumers are hoping to improve their overall score, but they don’t have the financial wherewithal to make this a possibility. If you’re in the financial situation where you can only complete the minimum monthly payment each month, it may be in your best interest to consolidate the debt into one loan. While you surely have to account for applicable interest rates, this should eventually have a positive influence on your credit score.
Tip #2: Pay Off Your Debt
This may also seem relatively obvious, but there are plenty of consumers who are content to complete only the required minimum payment each month. This has a negative influence on your credit score, especially if you juggle multiple payment methods during one transaction (in an attempt to get around any of the accompanying restrictions). Companies will recognize this discrepancy and punish you accordingly.
While it’s usually a good idea to have multiple credit cards, it isn’t a good idea to have an outstanding balance on numerous accounts. If you’re looking to improve your credit score, it’s in your best interest to focus on one particular chunk of debt at a time (preferably the one with the higher accompanying interest rates).
Tip #3: Don’t Remove Previous Debt
We’re sure you’ve been in this situation: the moment you pay off any debt, you’ll immediately looking to remove that note from your credit score. After all, paying off debt in a timely manner is a positive factor, and this will surely improve your standing over time. That way, when lenders refer to your credit score, they’ll clearly see that you aren’t a financial risk. Ultimately, this information will have more of a positive influence than a negative influence, and these former indiscretions will eventually be removed from your credit score, anyway.
Tip #4: Think Ahead
Every time a consumer attempts to access their credit score, they’re slightly hurting their standing in the process. These are considered hard inquiries, and most lenders interpret multiple hard inquiries in a short amount of time as an indication that you’re looking to secure a large amount of credit. As a result, your score will subsequently go down.
If you’re looking to make multiple large purchases, including a car and/or house, it’s best to time these purchases so you only require a single hard inquiry. Ultimately, it’s best to be proactive and has all of this information at your disposal as quickly as possible.
Tip #5: Avoid Risk
Have you been eying a new television? Perhaps you’ve considered opting for a brand-new car instead of the inexpensive used alternative. While these purchases may be alluring, it might be in your best interest to avoid any financial risks. While the impending monthly payments may not seem particularly ludicrous, you’ll still have to account for your future financial standing. If there’s even a minimal chance that you might need to dedicate that extra money elsewhere, you should be considering the cheaper alternative.
Tip #6: Assure Accuracy
Everyone makes mistakes, and that includes the companies that are monitoring your credit. In other words, you should be giving any of your reports a proper and thorough review. Some of these companies may have failed to remove a specific debt from your standing, or they may have mistakenly listed “on-time” payments as late. These companies won’t recognize any discrepancies or mistakes, so it’s your responsibility to identify any issues. Otherwise, you’ll find that your score is needlessly decreasing.
While you’ve discovered easy ways to improve your credit, you still might be searching for a new or used ride. In that situation, you can’t do much better than online.cars. For starters, the business is willing to finance any customers, regardless of their financial situation. Thanks to online.cars’ ability to pull from a nationwide database of vehicles and deals, you’ll have few issues finding a deal that works for you.
Of course, that only skims the surface of the business’s incentives. Customers won’t find a more convenient car-buying process, as online.cars allows these individuals to complete the majority of their purchase from the comfort of their own couch. Furthermore, they also provide a number of monetary benefits, only emphasizing why this is the right choice for you. So what are you waiting for? Contact online.cars in your pursuit of a higher credit score!