How to Get a Better Credit Score

If you’re looking to buy or lease a new vehicle in the Pella area, your credit score plays an important role. Your credit score is crucial for securing everything from an apartment lease to health insurance, so you’ll want it to be in the best shape possible. However, many people suffer from poor credit that holds them back from leases, mortgages, loans, or insurance. If you’re looking for a new vehicle but you’re being held back by your credit score, don’t worry – the finance team at DeYarman Automotive is here to help! We’ve drawn up a quick guide outlining ways to raise your credit score, so you can be in good standing as you search for your next ride.

Tips to Increase Your Credit Score

Here are a few pointers on how to get a better credit score:

Check Your Credit Report

When searching for “how to boost my credit score,” the first and most important thing you can do is review your credit report. There are sometimes small clerical mistakes that happen on these reports, and while they’re often minor by themselves, if they add up, they can cause serious unnecessary damage to your credit score. Be sure to order a credit report from each of the three major credit bureaus – Experian, Equifax, and TransUnion – so you can compare them. You can also obtain one free copy of your credit report per year thanks to the Fair Credit Reporting Act; visit AnnualCreditReport.com for details. 

Assess Your Debts & Create a Repayment Plan

Your debts have a major effect on your credit score, so you’ll want to get them in order as you work to improve your credit score. Make a list of all your current debts, and keep in mind that your credit score is affected both by your debt-to-credit ratio and the number of cards with balancesyou currently have. The more cards with balances you have, the lower your score will be. Once you’ve outlined all your current debts, put together a repayment plan that focuses on eliminating smaller balances, working to pay off larger debts, and tackling debts in collections.

Open a Credit Card

Another tip to increase your credit score: open a new line of credit. Naturally, your credit score will be lower if you’ve never had a credit card or loan in Indianola. If your credit score is poor, you may be able to open up a new credit card, and, as long as you pay everything in full and on time, you’ll start to improve your score right away. You can also check out a secured credit card instead if you don’t qualify for a regular card, since they have smaller credit limits and initial deposits of a few hundred dollars.

Minimize New Credit Applications

While one of our ways to raise a credit score is to open a new credit card, you should really only use this as a last resort. Every time you apply for a credit card, the lender will run a credit check, which will lower your credit score. Taking out too many new cards at a time will lead to many credit checks, which will cause a major hit to your score.

Find Out More Ways to Raise a Credit Score at DeYarman Automotive

If you have any questions about “how to boost my credit score,” don’t hesitate to contact our office! You can also stop by our dealership to talk to a member of our finance team in person for more guidance on how to get a better credit score; we’re conveniently located near Southeast Des Moines and happy to help. If you’re ready to move forward with the buying process, you can apply for financing right from our website.