If you’re planning to use financing options - such as those available via Ford Credit - to purchase your new car, you’ll want to make sure your credit score is in good standing before you start.
Simply put, the better your credit score if when you make your application for car financing, the more likely you are to get a better rate or lower interest - and, sometimes, it could affect whether you can buy the car or not.
So, if you’re thinking of getting a car financed in the foreseeable future, here are 10 ways to improve your credit score to help you get the car you want.
1 - Know your credit score
Before you can work on improving your credit score, it helps to know where you’re currently at. You can check your credit score for free on sites such as Experian.
2 - Pay your bills on time
If you’re planning to take out credit for a car, now is the time to try and pay every single bill on time in order to prove that you are financially stable and a reliable customer.
3 - Pay off your credit cards
Credit card information is kept on your record for a long time. This can have a negative impact on your credit if you miss payments, but will ultimately help your credit score if you pay on time.
4 - Reduce your credit card spending
While having credit cards - and paying them on time - can help improve your credit score, you want to keep the credit you take out right now to a minimum.
5 - Keep credit cards open
Even if you’re not using your credit cards much, it’s always best to keep the accounts open because each one helps to improve your credit score.
6 - Check for past errors
It’s not uncommon for there to be errors on your credit file. If you spot any, make sure you dispute it in order to get a fairer score and improve your chances of getting car finance. Websites like Experian can help you through this process, usually at no cost to you.
7 - Avoid applying for any other credit
In the lead up to your car finance application, avoid taking out any other unnecessary credit. Doing so could limit how much you can apply for.
8 - Try not to change job or address
Stability is helpful when applying for credit. Therefore, if you can, try to wait until after your credit application before changing jobs or moving house.
9 - Save up for a down payment
The more you can pay as a down payment, the better your financing options will be. In the months leading up to your application, try to save as much as you can for the car down payment.
10 - Only apply for what you need
When it comes to credit, it’s a good idea to only ever take out what you need. While the limits available to you may be surprisingly high, avoid taking more than you need in order to keep your credit score in good shape.