When you want to receive a loan to buy a car, lenders will look at your credit score for evidence that you manage your money well and would be a responsible borrower. Each year, many Americans are unable to purchase a vehicle due to bad credit; to ensure you aren’t one of them, below are several tips to boost your score.

How to Boost Your Credit Before Buying a Car

1. Reduce Credit Utilization 

Credit utilization is the amount of available credit that you have, versus the amount that you’re using. For example, if your credit limit is $2000, and your balance is $1000, your utilization rate is 50%. To make yourself a more appealing customer, bring this down to about 30% or lower.

Paying off your debt is one way to bring down your utilization rate before you begin your car hunt. Another way is to increase your credit limit so that your debt takes up a smaller share of it. Some credit card companies will automatically raise your limit, while others will require an inquiry. Alternatively, you might open a new account. However, this can lead to excess spending.

2. Pursue Inaccuracies

Before applying for your car loan, make sure your credit report presents an accurate picture of your finances. Check multiple credit bureaus to ensure they’re all in agreement; on the report, ensure each listed account is yours. If you find an error, speak to the credit bureau to correct it before it impedes your purchase. To ensure your report stays accurate, check it at least once a month.

3. Pay Bills On Time

In the months leading up to your purchase, ensure you pay each bill on time, whether it’s utilities, phone bills, or student loans. If you have trouble remembering, set a reminder on your phone or enroll in auto-pay. Each time you pay late will adversely affect your credit score.

For those who are already behind on bills, start by paying off what you owe. Even if you’ve failed to make payments on time in the past, showing sustained change will improve your chances with lenders.

Build up your credit and buy a new set of wheels from Hollywood Motor Co. in Breckenridge Hills, MO. With their large inventory of cars and experienced sales staff, you’ll have no trouble finding your ideal vehicle. Browse their cars, SUVs, and trucks and test drive the ones that appeal to you most. Rely on them to help you find a reputable lending agency to finance your car. Call (314) 423-0033 to discuss your needs and options. Visit them online to view their available inventory.