My Credit Score is Okay, But Could It Be Better

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Sometimes, you don’t have the cash on hand to pay for something out of pocket. Whether you’re buying furniture, a seaside cottage, a ski boat, or a car, you may need to borrow some money. That’s what the banks are for, right?

So you go down to your bank and apply for a loan, perhaps to finance your Build-a-Bear franchise or an ice cream machine. You’re approved, but those competitive interest rates the bank advertises on their billboard aren’t what you’re offered on paper. The rate is double, triple, or even more. It puts your payments out of reach. Apparently, the loans officer tells you, your credit score isn’t all it can be.

Table your dream for a moment. With a bit of work, you could improve your credit score to make your dreams a reality.

  1. Save more than you spend. Lenders want to see someone that isn’t overextended. While you may be borrowing money, it’s always good to have a slush fund in an untouchable account. It looks favourable on your credit score.
  2. Pay your bills regularly. Late or missed payments show up on your credit report. When that happens, your credit score drops. Showing a good history of regular payments makes lenders much more comfortable to give you credit.
  3. Don’t max out your credit cards. When your credit cards are maxed out, it looks like you can’t afford what you’ve already bought. That doesn’t look good on your credit report, and it can hurt your credit score.
  4. Never let bills go to collections. It’s true that your utility bills aren’t reported to the credit bureau in most cases. However, if you don’t pay your bills and it goes to a collections agency, that gets reported. That hurts you more than a late payment on your credit card.
  5. It’s never too late to improve your credit score. If you’ve had credit problems in the past, whether a bankruptcy, late payments, a repossession, or anything else, you can rebuild by using good financial practices starting now. Follow these tips to improve your credit score.

If you need a car now, let Riley Motor Company help get you the best rate for your purchase. We work with lenders who know that your car loan can improve your credit score and will work to help you succeed.