Your Guide to Credit Repair
Any seasoned car buyer understands the importance of good credit when financing a new, used, or certified pre-owned vehicle. However, if you’ve encountered a few speed bumps along your credit-building journey, it’s essential to know what steps to take to get back on track.
Luckily, our team of experts is here to help you navigate your credit history with this Guide to Credit Repair created by Andy Mohr Speedway Chevrolet. Thanks to the useful tips and tricks found inside this manual, you’ll know exactly how to improve your credit score and impress lenders near Indianapolis, Fishers, and Carmel.
Steps to Repairing Credit and Buying A Car
Step 1: Educate Yourself
Find out more about down payments, auto loans and financing. Learn how credit scores are calculated and what you can do to build your score back up. Remember that when looking for credit, knowledge is power.
Step 2: Review Your Credit Report
The next step will be to check where your credit score is at to determine how much work you’ll need to do to get it back up. Repairing your credit is a marathon, not a sprint, so you’re going to have to work to improve certain habits to raise your credit score over time.
Step 3: Look for Mistakes in Your Credit Report
Mistakes happen, and that statement rings true for credit report companies as well. That’s why it’s a good idea to get in touch with your credit report companies to find out if there are any mistakes in how your financial history is represented. This can be an easy way to raise your credit score by several points.
Step 4: Raise Your Credit Limits
One of the main contributing factors to your credit score is the ratio of debt and remaining credit on your credit cards. If you have a lot of debt on one card and you want to lower that ratio on it as soon as possible, getting in touch with your bank to have your credit limit raised is a quick way to do that.
Step 5: Contact Finance Team
Our team of financers have relationships with a variety of banks and lenders. Ask our team how they can help you get approved on your next auto loan. Thanks to the variety of lenders we have access to, we can help you get approved for a loan even if you have a low credit score.
Step 6: Find Your Vehicle
Search through our new and used inventory to see which vehicle you want to finance or lease. Consider what you want out of your vehicle. Do you want a model with more fuel efficiency or a model designed with more comfort in mind for your commute?
Step 7: Get Pre-Approved
Save time at the dealership by utilizing our online finance application. All it takes is a quick trip to our website, and from there, we can get you approved for a loan before you even step foot in our showroom. We’ll make sure you’re totally prepared to buy your next car when you come to meet with us.
Check Your Records!
First and foremost, you’ll want to request an official copy of your credit report from any of the three major credit bureaus. By doing so, you can review the details of what may be holding your credit score back and address anything that’s inaccurate.
For example, if you notice a debit that’s already been paid off still inhabiting your report, you’ll want to dispute the incorrect information and contact the institution to let them know. That way, you can see what your final score is after that particular inaccuracy has been removed.
Keep Your Debt
While this tip may sound a little counterintuitive, hear us out. Credit is a way for banks and lenders to track your repayment reliability. If you’ve had a long-standing account that displays your ability to pay off a loan in a timely and consistent fashion, you’ll want to keep this debt on your account.
That’s because potential lenders can easily take a look at your credit history and see that you have a track record of dependability, meaning that you pay your bills on time, every time. So, if you’ve been particularly stellar at repaying your school loans, credit card, or any other source of debt, keep that on your history!
Pay the Bills
Although this suggestion may seem obvious, it’s hugely important in earning and maintaining a sparkling credit history and score. Simply put, building an outstanding record, or repairing one that needs a little work, requires good, old-fashioned persistence and determination.
By routinely paying your bills, you’ll gradually acquire better and better credit. After you’ve managed to keep up with your expenses for a number of years, you’ll be able to reap the benefits of a flawless credit history that you’ll be proud of.
Create New Lines of Credit/Open New Loans
Responsible debt is a key part of building up your credit score. That’s why it can sometimes be a good idea to get a loan or even get a new credit card as it can show activity in your credit usage. However, it’s a good idea to do this once you’ve built up healthy credit habits first.
While opening a new credit account can be helpful in the short term, if you aren’t able to keep up with the debt, it can lower your credit score in the long run. Make sure that when you ask for another credit card that you have a good financial strategy established.
Age Gracefully
Another huge component of credit reliability is the age of your accounts. The longer you prove your ability to pay of outstanding debts, the more attractive you’ll appear to lenders and banks when being considered for a loan.
This credit score tip probably comes as a bit of a relief to those of us who are new members of the credit world.
To keep your credit in a good place, all you have to do is figure out the best way to consistently pay off your bills on time and stick with it. Over time, you’ll notice your score increasing until you’re a full-fledged credit expert.
Finance Your Vehicle Today!
Now that you’re more familiar with the intricacies of credit repair, it’s time for you to build up your history with fair financing on your automobile. At Andy Mohr Speedway Chevrolet, we pride ourselves on our willingness to work with credit scores of all types.
So, if you’re ready to traverse the roads of Indianapolis, Fishers, and Carmel inside the car of your dreams, give us a call or stop by our financing center today!
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| Monday | 7:30AM - 7:00PM |
| Tuesday | 7:30AM - 7:00PM |
| Wednesday | 7:30AM - 7:00PM |
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| Friday | 7:30AM - 6:00PM |
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| Sunday | Closed |