Tips to Increase Credit Score in Valencia

Credit History

Have you found yourself saying, “I want to secure a car loan, but I’m unsure how to boost my credit score?” The finance team at Frontier Toyota is here to help. Consider our list of tips to increase your credit score before you visit our dealership in Valencia to explore our new Toyota inventory.

Ways to Raise Credit Score: Check Your Credit Reports

Checking your credit reports is the first step to raising your credit score. When you do, you can identify any potential mistakes that affect your credit, as well as determine whether a major issue like identity theft is at play. Obtain reports from all three credit bureaus: Experian, Equifax, and TransUnion. You are entitled to one free credit report copy a year under the Fair Credit Reporting Act, which can be accessed at AnnualCreditReport.com.

Ways to Raise Credit Score: Assess Your Debts

Do you currently have a mortgage or student loans? What does your credit card debt look like? Get a handle on exactly what you currently owe and how that is influencing your credit score. Two major factors include:

  • Debt-to-Credit Ratio: This indicates your available credit vs. how much you have charged. Experts recommend keeping credit card charges in particular under 30% of the available credit line.
  • Credit Lines with Balances: The more credit lines with balances you have, the lower your credit score is.

Ways to Raise Credit Score: Create a Payment Plan

Once you have identified your debts and know how much you owe, create a repayment plan to gradually boost your credit score. Tackle any debts in collections first, followed by eliminating any small balances on cards. From there, you can work to pay down larger debts.

Ways to Raise Credit Score: Open a Credit Card

Perhaps you simply haven’t had a loan or credit card, which is another reason your credit score would be low. One of the top tips to increase credit score is by opening a credit card to help establish credit, so long as you commit to limiting spending and paying the bill on time every month.

Ways to Raise Credit Score: Minimize New Credit Applications

Opening a credit card or taking out a new loan can certainly help you in learning how to boost your credit score. However, be judicious in what you apply for. When lenders do a hard inquiry of your credit, that can end up impacting your score for up to a year.

Learn How to Boost Your Credit Score with Frontier Toyota

Frontier Toyota is your go-to resource for how to boost your credit score so that you can get behind the wheel of a vehicle you love. Get in touch with us today if you have any questions on where to begin!

 

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