Quick Ways to Boost Your Credit Score Before Getting a Car

If you have bad credit, you might be understandably nervous if you need dealer financing to buy a new car. While there are bad credit car loans that can help you out, you can help yourself by doing everything you can to boost your credit score before applying for financing. Try a few good tips in the months leading up to your purchase.

Look At Your Credit Report

If you haven’t already, order your free credit report and take a look at it to see if there’s any out-of-date or incorrect information that needs to be cleared up before lenders run your credit. Should there be any inaccurate information on your report, getting it cleared up could boost your credit score a few points. Make sure you request a free report from both Equifax Canada and TransUnion Canada.

Take Care of As Much of Your Debt As Possible

Do everything you can to pay down your smaller debts before you apply for financing. In addition to smaller amounts owed, focusing on those that have higher interest rates is also a good idea. A sizeable percentage of your credit score is determined by how much of your credit limit you’re currently using, so getting that number as low as you can is sure to go a long way in polishing that credit score.

Increase Your Credit Limit

Going back to your credit limit, there’s a chance you might qualify for a higher credit limit with your current credit card companies. You’ll have a better chance of being approved for a limit increase if you’ve paid your credit card bill on time, have been a customer for a while and don’t use too much of your credit. If you’re approved for a limit increase, pretend as if your limit hasn’t changed to keep your credit limit use low on your credit report and your credit score high.

If you can only boost your score by a few points, that’s better than nothing. Lenders like to see you making an effort, and that effort could help you receive approval for your loan.

Get The Right Used Car or Used Truck For You

Next to your house, your car is probably one of the most substantial investments you will ever make in your life. It’s important while car shopping that you explore all of your options and choose the absolute best vehicle that meets your needs without draining your budget in the process. Here are a couple of things to keep in mind as you shop.

With the cost of gasoline continuing to increase, you may wish to explore a more fuel-efficient model of car for your next vehicle. The cost of gasoline can make a substantial difference in the overall affordability of your car, especially if you have a longer commute or have other duties and activities that keep you driving around a lot in your free time. Some individuals can save hundreds of dollars each month by trading in their older, gas-guzzling SUVs and trucks and switching to a hybrid, compact car, or model designed for enhanced fuel efficiency.

If you are tired of constantly stopping at the gas station and watching the numbers on the pump creep up and up as you refuel, it may be time to make the switch to a more economical used car.

Speaking of used cars, it is no secret that pre-owned cars are a great value—the consumer demand for affordable cars is partially why the pre-owned vehicle market is as robust as it is today. It’s critical when selecting a car that you choose one that fits well within your monthly budget.

You also need to take other vehicle costs into consideration, including insurance, gas, tune-ups, and maintenance. If you do a substantial amount of driving every month, you’ll need to keep a particular eye on maintenance due dates to ensure you keep your ride driving perfectly season after season. It can be easy to fall behind on routine maintenance like oil changes without adhering to a schedule or paying close attention to the odometer every month, so it behooves you to create a way of reminding yourself when maintenance is due.