We’ve all been there. The car or truck that’s been paid off for years – the car or truck that’s been saving us from monthly payments – has come to its final days. We need a loan from a financial institution to replace our departed friend. For those with solid or perfect credit, securing that loan from a bank is fairly simple. For millions with less than stellar credit, it is far from simple.
Luckily, there is a proud financial institution like Credit Capitol in the Charlotte area that specialize in lending a helping hand to those whose credit has seen better days. Credit Capitol specializes in vehicle loans only. They know how vital it is to have working transportation, and they want to help you secure a loan that fits your budget.
Credit Capitol cares so much, they want to let you know the various ways to improve your credit score.
- Get a Copy of Your Credit Reports. This is a no-brainer. As a consumer looking to improve your credit, you have to know your current credit status. Thanks to modern technology, this can be done quick and easy online. You should check your current credit score with all three of the main credit bureaus – Experian, TransUnion, and Equifax. This knowledge will shine a light on the accounts that are damaging your credit score. Don’t be surprised to find accounts you have forgotten about. Again, knowledge is key.
- Take Care of Any Past Due Balances. A consumer’s payment history makes up 35% of his or her credit history. Reducing – or better yet, paying off – credit card balances is a vital step in improving your credit score. Another 30% of a consumer’s credit score is based on credit utilization. This is the ratio between your available credit card limits and how much your balance is. The closer your credit card balance is to the limits your credit card company offers you, the worse your credit score will be.
- Don’t Automatically Close That Credit Card. It’s natural to want to close out a card – especially one that you got just to receive interest free financing over a period of time from a major business. To improve your credit score, you must be knowledgeable about which cards to close and which cards to keep open. First of all, common sense dictates that you don’t close a card that has an existing balance. This is a sure-fire way to hurt your credit score. If you have multiple credit cards, avoid closing the one that has available credit. Having credit and not using it helps your credit score. Also, don’t close out the only credit card you have if you are lucky to have only one. You should also keep open your oldest credit card and credit cards that offer the best terms.
- Patience. Patience. Know that improving your credit score is not an easy fix. Start a financial plan where you commit to paying off a desired amount of credit debt each month.
One thing you don’t have to be patient with – regardless of your credit score – is contacting Credit Capitol to secure a vehicle loan that fits in your budget. Their website allows you to search local car and truck dealers for available inventory, and it has an easy-to-use loan calculator.
If you need that helping financial hand, let Credit Capitol guide you to the right vehicle loan for you.