Thursday, February 15, 2018

Tips to Improve Your Credit to Buy a New Ride

Buying a vehicle is a major purchase. Often times a loan is required to make this large of a purchase. Whether you have your own loan source or use our dealership resources, your credit is a major factor in your car loan. If you are preparing to buy a new vehicle in mid-Missouri, there are a few things you can do to prepare for the process. To get the best car loan possible, you may want to improve your current credit score. This week, we've focused our blog on tips to help you up your credit score.

Know Where You Stand

To begin the car buying process, it's important to know your current credit situation. Check your credit score to get an idea of where you stand. At this point, you can evaluate what changes should be made to improve your score, if needed. It's hard to make improvements if you don't know what your current situation is. It's best to be informed, especially when it comes to your credit.

Pay Down Current Debt

Try to make more than the minimum payments on your current debts. Once a large amount of debt is racked up, it can take a long time to pay it down if you are only making the minimum required. To get your debt under control to improve your credit score, make larger payments toward your debt. Try to pay the debt off instead of grouping debt together into one payment.

Avoid Adding New Debt

While financing a vehicle is adding new debt, try to limit the amount of debt you are adding to your credit score. If you want to buy a new car, don't rack up your credit card bills or take out a new loan for another expense, if you can avoid it. Adding debt back to back can throw up a red flag for financers and hinder your loan rate.

Limit Running Credit Reports

While checking your credit report is important, try to avoid running your report over and over. This can temporarily lower your score. Stick to limiting the people who run your credit report, if at all possible.

Make Payments On Time

A late payment is a red flag for many lenders. Try to improve your current score by keeping up with your bills. Payment history does impact your credit score and it's best to make payments on time.

Now that you know these tips to improve your credit, you are ready to start making changes. Once you are ready to buy a new vehicle, stop by our car dealership in California, MO. Our experienced sales team can help you find exactly what you are looking for! Here at Spieler's Inc., we look forward to helping you find the car of your dreams!

Proudly Serving the Columbia,
Jefferson City, and California, MO Areas

1109 W. Buchanan St.
California, MO 65018
(888) 455-2107

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