5 Tips to Help Improve Your Credit Score

From starting your own business to buying a home, a high credit score is an asset. If you have bad credit or no credit, now is the perfect time to start improving your score. Use these five easy tips to see your credit score rise this fall.

  • Pay your bills on-time. About 35 percent of your FICO credit score comes from your payment history. The best way to improve your credit score is to make sure you’re always paying your bills on time. Write down when each of your loan and credit card payments are due and set a reminder on your phone to pay your bills.
  • Limit your credit utilization. “Credit utilization” refers to how much of your available credit you use. Credit reporting bureaus see borrowers who use too much of their credit as riskier and more likely to miss a payment. Try to keep your utilization at or below 30 percent to see your score improve.
  • Budget better. If you aren’t living on a budget, you’re more likely to miss a payment or fall into debt. Sit down with your credit card and bank statements and set a household budget for yourself. Stick to your spending plan and put any extra money towards debt.
  • Add a loan. Credit reporting bureaus want to see that you have experience managing multiple types of credit. If you only have a credit card, your score might be lower than it could be. Adding a loan (like a bad credit car loan in Philadelphia, PA, from PA Auto Credit) diversifies your credit portfolio and can help raise your score.
  • Be patient. Credit scores don’t increase overnight. Stick to your healthy credit habits and monitor your progress — you’ll see your hard work rewarded over time!

Bad credit car loans in Trenton, NJ, from PA Auto Credit aren’t just great for getting the car you need to make it to work or school. They can also help raise your credit score if you make your payments on schedule. To learn more about how PA Auto Credit can get you behind the wheel of a safer vehicle, contact us now.