How To Build And Maintain Great Credit Score

How To Build And Maintain Great Credit Score

Posted on June 25, 2021

Not a lot happens in your financial life that doesn’t involve your credit score. That makes it a prime candidate for a little love and attention. Even if you’re not planning on taking out an auto loan anytime soon, knowing how to maintain great credit score can impact almost every aspect of life.

Our Port Credit auto loan team has provided some simple techniques to build and maintain great credit score.

Check your credit report

Your first task is to check your credit report to assess your current position. You’re entitled to one free copy of your report per bureau, per year. Contact TransUnion or Equifax to get a copy.

Check your report for accuracy and make sure everything is correct. If you spot any mistakes or omissions, contact the organization who made the entry and request they correct it.

Alternatively, use Equifax dispute resolution and TransUnion dispute resolution to make the correction.

Check your debt level

In credit score terms, it’s good to use credit so the report has something to go on. That said, the level of debt has to be carefully managed.

Go over 30% of your available credit and your score can be impacted. This is referred to as credit utilization and is something to keep an eye on. It mainly concentrates on credit cards but can include other borrowing too.

For example, if you have three credit cards with a combined limit of $20,000 and you’re using $2,000. That’s 10% credit utilization.

Go over 30% and it will begin impacting your credit score.

If you have more, pay down as much as possible as quickly as possible.

Use credit

If your credit utilization is low, consider using a credit card regularly. Your credit report needs input to be able to accurately calculate your risk. You can help it along by using a credit card.

Open a credit card if you don’t already have one and use it for groceries, gas and regular expenses.

Set up automatic payments for the minimum amount but make sure to pay it off in full each month. This will avoid the majority of the interest credit cards charge.

Over time, using credit and making on-time payments will begin increasing your credit score.

Get a Port Credit auto loan

We are not suggesting getting an auto loan in Port Credit purely to help increase your credit score. While paying a loan will help your score, it’s an expensive way to do that!

We are saying that if you’re in the market for a new car, using an auto loan is an effective way to pay for it while also increasing your credit score.

The regular payments help your payment history, the loan widens your credit mix and while it also contributes to your credit utilization, the benefits outweigh the costs.

Set up automatic payments so you never miss a loan payment and you’ll see your credit score climb higher over the year.

Keep up with this responsible use of credit and maintaining your new high score should be easy!

Contact Unique Chrysler for help, advice and competitive Port Credit car finance and leasing.

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