How to Improve Your Credit Score
When a Savvy Miss member asked the following question, we turned to Steve Rhode for his expert opinion.
I want to buy a new car but my credit score is low. How can I improve my score?
Here is a simple and quick five step method to get in shape to buy a new car at a great rate.
- Pull a copy of your consolidated credit report at Myvesta.org and make sure all the information reported about you is accurate. Contact the credit bureaus to remove any incorrect information.
- Make sure you are paying all of your bills on time.
- Check the net for auto loan offers. (Google search for "car loan" or "auto financing.") Also, ask you bank or credit union for their current rates. Armed with this information you are ready to head to the dealership.
- Talk to the dealer about financing. They will almost always beat the deal you have from someone else for financing. While they will always try to sell you the highest interest rate loan possible, they want your financing business, because they make money from it, and will come down on the rate if you come armed with actual information.
- If your credit is really, really bad and the final interest rate you get is "not friendly," live with it for a year, pay all your bills on time, reduce your credit card debt and then refinance the car loan once your score improves.