When you're in the market for a new vehicle but your credit score is less than stellar, the good news is that many auto dealers will still be able to work out financing to help you get behind the steering wheel. If you're not in a huge rush to buy the vehicle, however, taking some steps to raise your credit score can help you get a better financing rate when you return to the dealer and are ready to buy. You can't dramatically improve a credit score instantly, but some attention to detail in a variety of areas can contribute to a better credit score to help you get the vehicle you want. Here are some steps to take.
Get On Top Of Your Bills
Paying your bills after they're due is one of the mistakes that can really lower your credit score. Make a list of all your monthly bills, their average balances and how much money you have coming in. If you don't have enough money to pay all these bills, think about some ways to raise money quickly -- for example, selling some unwanted items online or in a garage sale. You can also make some bills more manageable -- for example, if you're paying too much for satellite TV, consider switching to a lower-cost programming package. When you're acutely aware of all your bills, you'll be more apt to pay them on time.
Pay Off Your Credits Cards, And Then Use Them Sporadically
Credit card debt is also a concern when it comes to your credit rating. Paying down a hefty credit card balance might be easier said than done, but is integral to raising your credit score. If you have a family member who can loan you a bit of money -- and you have a concrete plan on how you'll pay it back -- getting this loan can help you pay off the credit card. Once you've dropped the balance to zero, focus on making small purchases with the card and then paying them off promptly to show that you're financially responsible.
Make Some Spending Changes
A careful look at how you spend your money can help you avoid the pitfalls that are affecting your credit score -- and are preventing you from getting the best auto financing rate possible. Make a spreadsheet of all your expenses in a given month and then weigh those numbers against your net income for the month. These charts can show you where you're spending your money and how you can make changes to end up with more in your pocket. For example, if the list shows that you're spending too much money dining out, cutting down on this habit can leave you with more money to pay your bills.
To learn more, contact an auto financing company like Western Avenue Nissan.
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