If you are looking for a used vehicle and want to finance, your credit score will be one of the important factors. Your score will go a long way to determine which kinds of financing situations you will be eligible for. At Auto Outlets USA, we have various financing options available will all types of credit situations.
Tips To Keep Your Credit Score High When You Want To Finance A Used Car:
Tips To Keep Your Credit Score High When You Want To Finance A Used Car:
- 20-10 Rule: There is a typical rule that financial advisors recommend for credit, the 20-10 rule: Never let credit card deb run higher than 20% of your yearly post-tax income, and never use more than 10% of your individual monthly income to pay down credit card debt. Staying within these limits or even in tighter limits are vital to your credit score from swinging too far in the bad credit range.
- No Late Payments: Late payments or missed bills are one of the most common ways someone can lower their credit score. It is vital to make your payments on time as credit bureaus track on-time payments and will dock you heavily if yours is too low. Online bill payment makes this super easy and avoidable, we recommend setting up automatic bill pay.
- Emergency Fund: Try and keep 15% of your credit or more open at all times in case of emergencies and build an emergency fund, for emergencys so you do not have to touch your credit card in case there is an emergency and you have the cash. This way you are not forced to max out a card and damage your credit score.
- Debt: Alot of your credit score has to do with how well you consistently use your credit, but then how you pay it down in a acceptable period of time. A quick way to increase your score is to take on a little bit of "easy" debt - debt you can pay down easily and may have otherwise not even put on your line of credit. I.e. buying gas on your credit card then immediately paying it off. Repaying this debt early without missing any payments will help raise your score.