Car Finance Credit Repair

 

Discover How to Increase Your Credit Score to Apply for a Car or SUV Loan

Beck & Masten Kia appreciates that buying or leasing a vehicle in Tomball is not always easy. Especially, when you have poor credit.

Is it time that you finance a new vehicle? Perhaps you're attempting to determine how to increase your credit ranking for a car or truck loan? You may already know that your car or truck lease or loan rate is determined by your credit history, ranking and status. Improving your credit requires some work. You will definitely want to keep track of your score a number of months in advance before your car loan or lease application. Boosting a credit score overnight is impossible. With some time, however, one can most certainly make great improvements to a better score. Let's demonstrate how this can help.

The FICO Auto Credit Score Summary

Banks and credit unions often take FICO history and credit into consideration when deciding to lend. Auto lenders identify the a borrower's loan or lease eligibility by reviewing his or her credit rating.

To give you a score, credit unions review these five factors:

  • Amounts owed
  • New Credit
  • Length of borrower's credit history
  • Kinds of credit in use
  • New credit data
  • Borrower's Payment record

Even with all this information, the process of credit scoring may still not be very clear. Due to this complexity, dealerships often use several industry-specific factors to find out if you are a low-risk borrower. Remember that your credit score is an important factor that identifies whether you're able to pay your regular payments. That means that you should learn how to increase your credit prior to applying for car financing.

Why Fix My Credit Score?

Car and truck buyers with excellent credit may easily qualify for automobile loans with low interest rates or zero rate financing. an ideal ranking also presents you with an opportunity to negotiate while applying for your auto loan or lease. Those with weak credit, however, are typically ineligible for zero percent financing, small down-pay loans, and low-interest loans. In short, you may overpay when you have a bad credit profile.

Practical Hints for Fixing your Credit:

A weak credit ranking is bad news for any vehicle shopper. But it can easily be improved by working through these simple steps:

  • Monitor your credit score.
    • In the months leading up to your automobile finance application, you should pay close attention to your credit report.
  • Scan for red-flag items on your report. If possible, fix them.
  • On-time payments are critical.
  • Each time you miss a bill payment, your credit rank gets a negative hit. By avoiding it, you can increase your credit score.
  • Use a calendar to manage upcoming bill payments.
  • Shy away from credit card balance transfers.
  • Be extra careful while managing your card balance if you've bad credit.
  • If possible, try to clear any existing debts before you apply for an auto loan.
  • Track your report and correct errors.
    • Sign up for free reports from major credit bureaus: Experian, TransUnion, and Equifax. Free Credit Report
  • Be sure to file dispute if you find any.
  • Make sure your report is squeaky clean.
  • Do not apply for other credit.
    • Multiple credit applications will negatively impact your score and lower it. Avoid these kinds of actions if you're restoring a less than desirable credit history.

Tomball Auto Financing at Beck & Masten Kia

Car, truck, and SUV shopping is an exciting experience which involves more than a few steps to be most successful. For the most ideal financing experience, restore your less than desirable credit first. A higher score will aid you in acquiring a better car financing deal with more room for negotiation. Improving your credit can't happen quickly; so, give yourself enough time and track your credit for several months prior to moving forward with shopping for a new car .

Discover How to Increase Your Credit Score to Apply for a Car or SUV Loan | Beck & Masten Kia

Contact

Beck & Masten Kia

25503 Tomball Parkway
Directions Tomball, TX 77375

  • Sales: (281) 539-1111
  • Service: (281) 655-3131
  • Parts: (281)-655-3100

Hours

  • Monday 9:00AM-8:00PM
  • Tuesday 9:00AM-8:00PM
  • Wednesday 9:00AM-8:00PM
  • Thursday 9:00AM-8:00PM
  • Friday 9:00AM-8:00PM
  • Saturday 9:00AM-8:00PM
  • Sunday Closed