Posted on: Nov. 02, 2016 in Car Loans, Credit, Debt

If your credit score is a little lower than you’d like it to be, there are some things you can do to raise it. These tips can help bring your score up quickly, hopefully within a month or two. Before you can raise your score, however, you need to know exactly what you’re dealing with. You are entitled to one free credit report per year from each of the three main credit bureaus, Equifax, Experian, and TransUnion. One way to get these reports is through AnnualCreditReport.com.


Step 1. Check your report for errors and, if you find any, dispute them. Items that do not belong to you or are no longer outstanding could be hurting you. Also, look at the reported limits on your credit cards to be sure they are not too low. This is another reason to monitor your report regularly.

Step 2. Work with your creditors to remove the account that went to collection. Perhaps you really do owe what someone says you do or you did default on a loan or credit card. It happens. There’s no harm in calling your creditors to ask them to report the account as “paid as agreed” or to remove the item in exchange for a new repayment agreement. (Make sure you stick to any new agreement so the item doesn’t end up back in collections!) You may even be able to get a creditor to remove a few late payments if you had a good history with them until a period of late payments occurred.

Step 3. Obtain new credit. A credit card with available credit with lower your debt-to-credit ratio. If you have more room to borrow that you aren’t currently using, this will increase your score. Conversely, if you’re borrowing too close to your limit, your score will be lower. If a new credit card isn’t an option, consider a secured credit card that reports to all three bureaus or becoming an authorized user on a friend or family member’s credit card. At the same time, don’t close any credit cards either, since that means you’ll have less credit available to you.

Step 4. Keep your borrowing in check. Remember that debt-to credit ratio? It’s really important. Just because you can borrow more doesn’t mean you should. Even if you’re paying off the card in full every month, using almost all of your available credit or regularly maxing out your card will negatively impact your score.

Step 5. Ask for a credit increase. If you’re consistently using too much of your credit, consider asking the credit card company to raise your limit. Doing so opens up your available credit, thus raising your score as detailed in the previous step. A word of caution though: don’t use this as an excuse to spend more or else you’ll defeat the whole purpose!

Bonus tip: Obtaining a car loan is another way to raise your score. Having different kinds of loans on your credit history can help. Credit card debt, known as revolving credit, is just one type. Installment loans, like a car note, will also show you as a responsible borrower.

If you need auto financing but your credit is keeping you from getting approved, CreditYes can help! We can match you with a dealership in your area that will be with you every step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!