Applying for pre-owned auto financing can be stressful if you’ve had credit issues in the past. If you’re worried about debt keeping you from your next car, take these tips for a better chance of approval at Moran Certified Pre-Owned. It takes a while to raise a credit score, but in the long run, it’s worth it.
Make Automatic Payments
It’s easy to let monthly payments slip your mind, but interrupting a streak of on-time payments can harm your credit. Set up automatic payments for any bills, like your power bill or phone bill, so you can keep your on-time payment rate as high as possible. Remember, late payments stay on your report for up to seven years, so it’s worth it to make it automatic. Try to keep your usage rate to 30% or less, while you’re at it.
Challenge Your Credit History
If you haven’t carefully read your credit history report, you may have incidents from other people keeping your score down. Check for any entries on your report that you don’t remember and challenge them with the credit bureaus for a quick boost to your score. You should also look for any major payments you remember making that, for some reason, aren’t on your report.
Keep Accounts Open
Several different factors go into your FICO® credit score, including the average age of your accounts. That means that, even once you’ve paid off your oldest credit card’s debt load, it’s worth it to keep it open. Closing it will lower both your available debt and your account age, and since that’s 15% of your score, it can have a big effect.
Apply for Pre-Owned Financing in Chesterfield, MI
There are plenty of ways to quickly boost your credit score, not to mention co-signers and other ways to get approved. Visit our Chesterfield used car dealership and find out more from our team. We’ll walk you through applying so you can take a test drive today!
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