Posted on: Aug. 24, 2017 in Credit, Credit Score

Your credit score is used in a variety of ways that can have a big impact on your life. Everything from getting approved for credit, car loans, and mortgages to your insurance rates, employment, and apartment rentals can use your credit score to determine approval. When your credit score is higher, getting approvals are much easier and the terms of your loans, such as interest rates, are usually better, too.


If you know your score, you can check out your credit history by obtaining free credit reports from one or all of the three main credit bureaus, Equifax, Experian, and TransUnion. They can each give you one free report per year. If your score is low, or just not as high as you want it to be, there are things you can do to raise it.

First, make sure all the information contained in your report is accurate. Inaccuracies can cost you. If you find any errors – accounts showing in default that you know you paid, items that don’t belong to you, inaccurate credit limits listed credit cards, etc. – dispute them.

If you have accounts that have gone to collections, work with creditors to clean these up. Call to make arrangements to repay your loan. If you can’t repay all at once, may creditors are willing to negotiate. Ask them to report them as “paid as agreed” or remove the item in exchange for a new repayment agreement. If you only have one or two late payments, ask the creditor to remove them if the rest of your history is good.

Opening a new credit card can also help boost your score. Having maxed out cards or very little available credit can really hurt you. Aim to use no more than 30% of your total available credit. Opening a new card can help put your debt-to-credit ratio back where you need it to be. 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.

If you have cards with no balances, don’t close them. You’ll have even less credit available to you. Just let them hang out and don’t use them! If your cards are paid off, keep them that way. Just because you can borrow more doesn’t mean you should. If you’re going to use your card, borrow only as much as you know you pay off that same month and be sure to pay it off.

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’re ready for a new car but your credit is keeping you from getting approved, CreditYes can help with our bad credit auto loan program! We can match you with a dealership in your area that will be with you ever 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!