How to raise your credit from bad to good
Life is not always a cakewalk. A lot of things can happen, and oftentimes your path to financial success or stability is not a straight and narrow one, but rather, a path that is filled with twists and turns here and there. Sometimes, for any number of reasons, your credit can take a hit. Maybe you had some unexpected medical expenses that drained your savings account. Maybe a bill fell behind the counter and was missed, causing a late payment. Whatever the case may be, when you have bad credit, that can hinder you from getting approved for loans or getting a low interest rate. You’ll want to do what you can to get your credit score back up, so we put together a few tips for how to raise your credit from bad to good.
What to do to increase your credit score
- First and foremost, with whatever bills you have, make sure they are all paid on time. Set reminders in your phone calendar for each due date or set up automatic withdrawal for them if it is an option.
- Don’t close out your credit card accounts, even if you are not using them. Closing accounts can increase your credit usage ratio, which will hurt your score.
- By the same token, don’t keep applying to more and more credit accounts if you’re having debt and credit problems. This will ultimately just make things worse, especially with all the credit pulls that would generate.
- Come up with a plan to pay off your debts. Perhaps you can pay more than the minimum on the smallest debt you have, getting ahead of it and paying it off early. Then, once that is paid off, do the same thing for the new smallest debt you have, and so on.
Can financing a vehicle at Carizma Motors help your credit score?
Yes, it can! At Carizma Motors, we can work with people who have bad credit or no credit as a buy here pay here dealership, since our financing is done in-house, and we don’t need to worry about a third party getting involved. We’ll find a payment plan that works for you, and with that plan, your on-time payments can start getting your credit score on the up and up. Contact us today or apply online to get the process started!