Ways to Improve Your Credit Score

Are you looking for ways to raise your credit score, Ontario drivers? You are not alone. At BMW of Murrieta, we want our customers and nearby communities to build their confidence by knowing how to get a better credit score. Therefore, we share tips to increase a credit score so you can move the barometer in the right direction. Contact our finance team for more information. In the meantime, let’s answer the question, “how to boost my credit score?”

How To Boost My Credit Score?

There are several ways for Riverside drivers to increase their credit score rating. Here are some tips to increase your credit score:

Check Your Credit Reports

Before you learn how to get a better credit score, you need to know the up-to-date status of your credit score. You are authorized for one free credit report per year from one of these three major credit bureaus: Experian, Equifax, and TransUnion.

Reassess Your Debts

Print off your latest credit score report and make a list of all of your debts to prioritize. You will see from your report which of the debt is impacting your score the most. 

Debt to Credit Ratio: How much available credit vs. how much credit you are presently using. The measurement should not be more than 30% of your available credit, or it negatively impacts your credit score.

Cards and Balances: The more your balances go up on a card, the lower your credit score. Therefore, you also need to keep track of how many credit loans and credit cards you own and who has access to those accounts.

Stick To a Payment Plan to Improve Credit Score

Create a credit plan that you can commit to and focus on paying off debts that have gone to collections first. Small debts that are older than five years and small balances on cards need to be at the top of your list as well. 

Get a Credit Card

Have you never had a credit card? If not, it is a terrific way to raise your credit score as long as you use it correctly. The rule of thumb is to not use your credit card unless you have the money to pay back on the credit card right away. 

For example, you can purchase gas using your credit card and transfer money to your credit card from your debit card once you arrive home. Therefore, you can build credit without going further into debt. Resist the temptation to make big purchases or waiting to pay on your credit card until the bill arrives. Stay on top of your credit card by only thinking of it as a credit builder instead of extra money. 

Build a Credit Age

If you know someone that has good credit and pays their bills on time, you may want to become a user on a family account. Their credit will reflect well on your credit report. Be sure to establish a written agreement with the person and stick to the promise. If not, your poor choices will reflect badly on their credit.

Decrease New Credit Application

Avoid applying for new cards or loans even when you can – while you have bad credit. A deep dive inquiry into your credit can impact your score for up to a year.

Get More Tips to Increase Your Credit Score Today at BMW of Murrieta!

You can get more advice on how to boost my credit score from our finance team. If you are wondering if you can get pre-approved for car financing, apply for financing online. We want you to drive the streets of Corona, debt-free. Connect with us online or stop bu in Murrieta to get you back on the road to financial freedom.

Did you like our tips on how to get a better credit score? Check out more car buying tips on our blog!