Rebuilding your credit after a foreclosure or bankruptcy can be difficult. Even if you just have a low credit score due to slow payments or large debt, it can be challenging to move your credit score a few numbers higher. At Credit Capitol we are in the business of helping folks rebuild their credit. It can be tough to find financing for large ticket items like a car when you have credit problems.
Here are some tips to rebuild or establish good credit:
- Get Financing. This may seem counter intuitive. The last thing you probably want is more debt, but part of rebuilding your credit score is getting a loan and making payments on time. Establishing good credit with a lender is one of the best ways to improve your credit score.
- Expect to Pay More. Unfortunately, having a low credit score means you are a higher risk for lenders. Expect to pay a higher interest rate or make a larger down payment.
- Protect Existing Credit. If you still have credit lines open, do not close them. Your credit score if effected by how long you’ve had accounts open. Be sure to make your payments on time. Even being 30 days late can drastically affect your score.
- Check your Score. Get a copy of your credit report from all three credit institutions: Equifax, Experian, and TransUnion. Examine your reports for errors. Be sure to dispute any errors you find.
- Pay your Bills on Time. This may seem obvious, but it is the number one factor that affects your credit rating. A whopping 35% of your credit score is based on paying your creditors on time. In order to rebuild or establish good credit this is the most effective tool.
At Credit Capitol, we understand credit issues. We specialize in helping people with “less than perfect” credit get financing for auto loans. We don’t offer home loans or business loans. We just specialize in getting you into a car. With a new car loan, you can help rebuild your low credit score by making your monthly payment on time. We work with a variety of lenders in order to find the right one for you.