Looking for a car loan but wish your credit was a little flasher? Your credit score is basically a three-digit number that helps lenders decide how likely you are to make repayments on any type of finance. It applies to car loans, personal loans, credit cards and home loans. The higher your score, the more likely you are to qualify for loans, and the lower your interest rate is likely to be. You can’t charm your way out of a bad credit score, so it’s worth keeping in check. While it’s not possible to turbo boost your credit score overnight, here are our top tips to help get your credit back on the road.
Review your credit report
Before taking on the task of improving your credit score, it’s good to know where you’re currently at. You can request a copy of your credit report online at Centrix, Illion or Equifax. Credit reports are free, although your credit score is sometimes only included in paid versions. Review your credit report to see what seems to be helping or hurting your score. You’ll see details of your credit enquiries, regular payments as well as defaults, court judgements, and any missed payments overdue for more than 30 days where the lender has attempted to recover the money. If you see any incorrect details there is opportunity to dispute them.
Pay your bills on time
Late (or forgotten) bills are a quick way to dent your credit score. Repayments on personal loans, car loans and credit cards are all counted, but utility providers are also credit providers, which means you’ll need to keep track of bills like power and phone.
Arranging automatic payments, setting up payment alerts or setting up a simple filing system will help you keep everything in order (and paid on time!)
Keep credit card debt low
While having some sort of credit helps your score, a maxed out balance suggests to lenders you’re at your limit of affordable debt. If your credit card is nearly always at it’s limit, it might be time to set up a simple budget (and stick to it!)
Don’t make too many loan applications
Each application for any form of finance, like a credit card, car loan, personal loan or mortgage, results in an enquiry on your account. The occassional enquiry isn’t a biggie. However multiple applications can suggest you’re in a financial pickle, and therefore higher risk. Our tip? Try to shop around for the best deal on a car loan before getting application happy.
Remember bad credit isn’t everything when applying for a car loan
It’s true that having bad credit can make it harder to get any loan approval. Because Sprint has some of the flexible lending criteria in the country, we still might be able to help with a car loan. We prefer to look at the positives of any application, such as stable income and affordability. Ready to get on the road? Applying online is super easy and super fast. Got some questions? Just give our friendly team a shout.