Are you looking to finance a new car? Are you worried your credit score might not be high enough? If so, take a deep breath and relax. People with less than good credit get approved for car loans all the time. In the meantime, here are three things you can do to improve your credit rating right now.
#1 Pay off a Large Sum of Your Credit Card
Holding onto a credit card balance doesn’t just cost you money in interest; it hurts your credit score. Your credit utilization ratio refers to the percentage of available credit you’re using. Ideally, you want a credit utilization ratio of 30% or less. If you’re using more than that on your credit card, pay it off!
Don’t have the extra cash? Try picking up some extra shifts at work or investing your spare time in some side work. The faster you can pay off your remaining credit card debt, the faster your credit score will improve.
#2 Have a Friend or Family Member Add You to Their Card
Opening a new credit card might not be an option for you. If that’s the case, why not asking a trusted friend or family member to add you as an authorized user to their card? If they make responsible bill payments, it will actually help to improve your credit score. As well, the additional credit will help your credit utilization ratio. You never need to use the card you just need the person with the card to act responsibly.
#3 Ask For a Credit Limit Increase
If you are a long-standing customer with a credit card company and have had relatively little issues with your balance, you will likely be approved for a credit increase. Be careful, though. Just because your credit limit has been increased doesn’t mean you should use more of it. The point of a limit increase is to lower your credit utilization below 30% and improve your credit score.
Applying for a Car Loan with Woodbine Nissan
Woodbine Nissan is the business of helping people with credit problems get back on their feet with an approved car loan! We have a team of financial experts that is second-to-none. They have experience dealing with all types of credit and a wide range of financial situations. If you have no credit, bad credit, or good credit, let us help! If you have any questions, call +1 (416) 748-2900 today!