How Is Your Credit? Make Sure You Know Before Shopping For A New Car Or Truck.

April 28th, 2010 by

When you are ready to buy a new car or truck you need to make sure you are aware of your credit score before deciding. It is possible that you may have low or no credit. There is no need to worry cause My Auto Loan has some pretty good tips for improving your credit. The more you know about your credit the better. You do not want to walk into your local Dayton Cadillac dealer and be surprised by your credit score. See the tips for improving your credit below.

1. Payment of bills. When you miss a payment or you only submit the minimum amount due it will lower your credit score at once. So always try to pay your bills in full and on time if you can. This accounts for a huge percentage of your FICO score.

2. Credit history. You want length. You don’t want to just close out all of your credit cards if you get them paid off! Keeping those cards open and charging something small once a month will help.

3. Say NO to new accounts. The more cards you open, the more red flags that are thrown up.

4. Don’t max them out. Don’t let your card get over 1/2 of the limit because it is possible in they eyes of the credit card company that you may not be able to pay that back. Just carry smaller cards and don’t put everything on one card.

5. Credit Report. Credit scores are based on credit reports, so it’s imperative that you check it periodically for any mistakes, fraud, or the like. If you don’t pay attention something may show up at anytime without your knowledge. It’s a good idea to get a copy of your credit report because federal law gives you the right to get a free report from each of the major credit bureaus once per year.

6. Variety is Key.  You’ll get better credit when having a variety of credit cards and loans.

Do you have any tips on improving your credit?

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