Last week, we talked about how even you — you, with bad credit — can buy a used car, but let’s talk for a moment now about ways you can improve your credit score, with a little help from northern Virginia Buy Here, Pay Here used car dealer!
Payment History Tips
Your payment history contributes more than a third to your credit score calculation, more than any other factor, and unfortunately, missed or late payments don’t just go away. What’s passed is in the past, and the only thing you can do is look forward.
Pay your bills on time.
Even payments that are only a few days late, and especially accounts have gone to collections can, and will have a negative impact on your credit score. So, pay your bills on time.
If you have missed payments, get current. And stay there.
The longer you pay your bills on time after being late, the more your credit score should increase. Older credit problems count for less, so poor credit performance won’t haunt you forever. Replace late, or missed payments with on-time payments, and watch your score rise-rise-RISE.
Know that paying off a collection account won’t remove it from your credit report.
Unfortunately, it’s true. Collection accounts stay on your credit report for seven years.
Amounts Owed Tips
Only slightly less influential than your payment history, the “Amounts Owed” portion of your credit report can be repaired much easier. With a little financial discipline, you’ll be well on your way to better credit.
Keep your balances low.
High outstanding debt can negatively affect a credit score.
Pay it off. Don’t move it around.
You might think: If I consolidate all of my debt and loans, my credit score will rise. We’re sorry to say, you might be wrong. Carrying the same amount of debt on fewer accounts may actually do more harm than good. The most effective way to improve your credit score is to pay down any revolving debt.
New Credit Tips
Know that it’s OK to check your credit score.
So long as you order your credit report directly from the credit reporting agency, or from an organization authorized to provide credit reports to consumers, checking your credit won’t harm your credit.
Begin to re-establish your credit history.
With locations in Falls Church and Winchester, Virginia, Car Credit Nation prides itself on offering Buy Here, Pay Here financing to everyone regardless of credit score — so here it is, your chance to drive away in a new [used] car, and repair your credit history in the process! Never again will bad credit hold you back: Visit Car Credit Nation, and drive away in a new [used] car!