Purchasing your first car and be an exciting but frequently confusing process. It’s likely the most significant investment you’ve ever made, and you want to be able to get a vehicle you’ll be happy with for a long time. Before you head to the car dealership, put some time and effort into improving your credit. This will allow you to qualify for a larger loan at a better rate, making that dream car a reality.

Your Guide to Building Your Credit Before a Car Purchase

How to Boost Your Credit

It’s ideal to have a credit score over 700 before heading to the car dealership. If you have something below 700, you’ll likely have a higher APR (Annual Percentage Rate) on your loan and may have to answer some questions about your credit history. You’ll build good credit if you don’t max out your credit cards, pay bills on time, and rent or own your home. Try to spend below 30 percent of your credit limit, set bills to autopay, and ensure that where you live is in both your name and the name of any partners or roommates.

Pay your credit card and other loan payments in full when they are due. If you do need to carry a balance on your cards because you cannot afford to pay them in full, then pay as much as you can each month. Always pay at least the minimum to avoid delinquency or having the account sent to collections. If you’ve never had a credit card before, then start with the one that has a low credit limit and would be easy to pay off. The longer you have that card, the better it will look on your report.

What Kind of Credit You Need

You have a few options in securing financing for your vehicle. If you have someone who can co-sign with you, you may get approved for a loan you otherwise wouldn’t have. The co-signer is typically a family member, such as a spouse or parent, with better credit. If they have good credit, it will boost your application since the co-signer becomes legally obligated for the loan if you were to default on any payments.

There are a few places you can get your loan. The car dealership may offer their financing option. You may also be able to go to banks, where you can get pre-approved for multiple loans to decide which one you want. There are online lenders as well, which make shopping around easy. You’ll want to research the company’s customer service first to determine whether they’re a lender you want to work with. Always be aware of the interest, APR, and other factors that determine how much you have to pay back and how long you have to do so.

Express Motors makes buying your first car easy and affordable. This Dayton, OH, car dealership has a large selection of quality pre-owned vehicles to fit your budget and lifestyle. You can even coordinate your current vehicle as a trade-in to make the process even more affordable. They offer financing options for people with all credit situations. Start shopping their current used cars online and call (937) 222-7777 to talk with a knowledgeable member of their car sales team.