Cash is slowly becoming a thing of the past. We live in a world of credit, and maintaining a good credit score can mean the difference between having the necessities of life and struggling to get by. There are many factors that contribute to your credit score and trying to understand them all can be a daunting task. One thing is for certain, if you are one of the many people with a credit score that is considered poor or if you have no credit history to speak of, it is time to get back on track.
At Drive Casa, helping people fix damaged credit histories is priority number one. Because we are so committed to credit maintenance and repair, we have compiled some quick tips on how to get a less than perfect credit score back on track.
Get Rid of Your Debt
The most obvious tip is to pay off as much outstanding debt as possible without adding new charges. Outstanding balances can bring a credit score down. While paying off your debt in one big swoop may be unrealistic, increasing your monthly payment even by just a few dollars can make a significant difference.
Don’t Close Unused Accounts
Avoid closing unused accounts. Getting rid of old accounts might make you less likely to use credit, and it also wipes out part of your credit history. People with little or no credit history will face the same challenges as those people with poor credit.
Check your Credit Score
Keep an eye on your credit report. Everyone makes mistakes – even the credit bureaus! There may be inaccurate information on your credit report that is contributing to a low score. Each of the main credit bureaus maintains a dispute department. If something doesn’t look right, report it.
Create a Budget
Create a personal budget and stick to it. Being disciplined with your finances will help avoid the pitfalls that helped lower your credit score to begin with.
These tips are just a few things you can do to help improve your credit score.
Establishing new credit so that you can re-establish a solid payment history can be hard with a tainted credit score. This is where we can help the most! We help people with little or no credit get into quality used automobiles regardless of their history. When you purchase a vehicle from us, you not only get a reliable vehicle but you take the first steps in showing a positive payment history. For more information, please visit our website!
For lenders and financial institutions, a credit score is a good indicator of an individual’s financial responsibility. If your credit score is poor, this can make it harder for you to get financing for a car, a personal loan, or a mortgage. However, there are simple steps you can take to make sure your credit score is impeccable.
Follow the tips below and watch your credit score go from poor to excellent:
#1 – Check Credit Reports for Accuracy
Before you start paying off debts that are on your credit report, make sure those accounts actually belong to you. It’s possible that an account that does not belong to you has shown up in your report. To ensure accuracy, check each account and charges. If you don’t recognize one of the accounts, contact the lender directly. All you need to do is prove your identity and that account should be erased from your report. Once you have all your accounts in order, you can move on to the next step.
#2 – Clear Up Collection Accounts
Old debts can be easy to forget if you haven’t checked your credit report in a while. That old phone bill from college can come back to haunt you when you’re trying to buy your first home. Take a look at the debts that have been sent to collections. Call the collectors directly. If you can’t pay in full, ask if you can set up a payment plan that works for your budget. Your credit score will increase significantly once you lower your balance and settle old debts.
#3 – Get a Secured Credit Card
A great way to increase your credit score without much effort is getting a credit card. However, if you have a tendency to overspend, a secured credit card can give you a smaller line of credit that is easier to handle. Your credit line with a secured credit card will often depend on the deposit you provide. If you feel like $200 is a manageable line of credit, use that amount for your deposit. Plus, secured credit cards are designed for people who are trying to improve their credit. If your credit score is less than stellar, you may still have a chance of getting approved.
#4 – Pay Bills On Time
One of the best and easiest ways to show that you are financially responsible is paying your bills on time. If you usually pay your bills days or weeks after they’re due, it may affect your credit score. Take a look at your monthly bills and see if any service providers will allow you to set up auto-pay. This way, you won’t have to keep up with your bills and the money will be deducted from your account automatically each month.
#5 – Keep An Eye On Your Credit Utilization Ratio
Paying off your credit card balance on time is important, but keeping an eye on your credit utilization ratio can save you from losing points on your credit score. Ideally, you should keep your debt-to-credit ratio under 30%. You should also avoid closing any unused credit card accounts. This will affect your utilization ration percentage and would do more harm than good. However, if you do decide to close any consumer credit accounts, make sure you maintain a 15% utilization percentage without having that credit card.
Following the tips above will get you on your way to a better credit score and teach you invaluable lessons about personal finance. Good luck on your journey to a perfect credit score!
At Drive Casa, we want to get you financially fit. Stop by one of our locations and find out how we can help you get the car you want while raising your credit score.
While carpooling and public transit to and from work and school makes sense, but when it comes to the Summer road trips, the American automobile is the only way to go. Many memories have been made as families loaded into the car for a long drive to the coast, the lake, or to visit family in a distant state. Road trips have been bringing families together for generations, even the less fun ones with the tired cars make for good stories. Remember the trip that the car overheated, we had a flat tire or worse of all the A/C stopped working?
Before you load up the car, here are 3 summer roadtrip car maintenance tips to keep in mind.
#1 Make sure your car is well-maintained.
Maintenance and repairs while on a road trip are costly and inconvenient. Before you hit the road get your oil changed, filters changed, and have all the levels checked. Driving is likely a significant saving over airfare, so why not invest some of that savings to make sure your ride is up to the task?
#2 Don’t wait to update your tires.
If you suspect you may need tires in a couple of months, and you are trying to get that last 1/32 of an inch out of your old rubber, put new tires on before hitting the road. Hot Texas roads can take their toll on fully loaded vehicles, pushing marginal tires to failure.
#3 Test out your new updates at home first.
When doing maintenance, give yourself a week of driving the vehicle in town. You want to make sure that any problem inadvertently created in the shop manifests while at home, and not between your home and El Paso.
If you’re ready for some time with family and looking for a way to express your American freedom this July, come see us here at Drive Casa and let us put you into a car that will be key to a memorable Summer road trip.
Ahorrar para poder comprar algo que deseas, como un auto nuevo, puede ser difícil. Necesitas disciplina, responsabilidad y monitoreo constante de tus gastos.
Si se te dificulta mantener un presupuesto, hay maneras en las que puedes mejorar. Debajo hay unas sugerencias que te ayudarán a alcanzar tus metas financieras:
Reduce tus Gastos
Gastar dinero es fácil, especialmente en cosas que deseas. Para mantener un presupuesto, tienes que implementar un poco de disciplina a tu vida diaria. Gastar más de $200 al mes en restaurantes tal vez no es la mejor idea si en tu presupuesto sólo puedes gastar $50. Echa un vistazo a tus gastos mensuales y se realista cuando decidas en donde puedes reducir tus gastos.
Cómpralo el Mes Siguiente
Estás en línea y acabas de ver la chaqueta perfecta. La quieres y la quieres ahora mismo, pero tu presupuesto está llegando a su límite. Cómprala el mes siguiente. Para entonces, tendrás suficiente dinero para comprarla o decidirás que ya no la necesitas. Esta técnica controlará tus compras impulsivas.
La mayoría de los bancos tienen la abilidad de mover dinero de tu cuenta de cheques a tu cuenta de ahorros automáticamente cada mes. Esto significa que puedes ahorrar dinero con mínimo esfuerzo. Además, evitarás gastar ese dinero ya que no estará disponible en tu cuenta de cheques.
Deja de Usar tu Tarjeta de Crédito
La conveniencia de usar una tarjeta de crédito puede ser perjudicial cuando quieres mantener un presupuesto. Cuando sientes el impacto de tus gastos hasta semanas despues, puede ser fácil gastar más de lo que tienes en tu presupuesto. Empieza a usar tu tarjeta de débito o considera usar efectivo para que puedas ver lo que le pasa a tu dinero al instante.
Se Consciente de Eventos Importantes
Estar al tanto de eventos importantes que requieren gastos más grandes, como cumpleaños o días festivos, te puede ayudar a prepararte y ajustar tu presupuesto para que no gastes de más. Crea un calendario con todas las fechas importantes y asegúrate de ajustar tu presupuesto con suficiente tiempo para cubrir tus gastos mensuales sin gastar de más.
Una cosa más – ¡Mantente positivo! Acuérdate que todo el esfuerzo que estás haciendo será recompensado muy pronto. ¡Estarás manejando ese auto que deseas en poco tiempo!
Si estás buscando un auto, ¡visita Drive Casa! Encontrarás el model que deseas en nuestro amplio inventario.