You can take some action to give your credit a boost, without having to hire a service to do it, or worry about the legality of it. These tried and true steps will put you on the path to better credit, just give it some time.
#1: Make On-Time Payments
The surest way to improve your credit is to make on-time payments. In all likelihood, this is how your credit headed south in the first place. Draw your line in the sand and make a promise to yourself to make your monthly payments on time. The more months in a row you can string together, the better, and your goal should be a year or more with on-time payments.
Don’t beat yourself up too much if you stumble a bit at first. It’s a learned skill to turn yourself around and do things differently than you’re used to. Try to identify where you slipped up and make a stronger effort, the next month.
With any habit, the more you do it, the easier it gets. After a year of on-time payments it will probably seem natural to you, and you’ll wonder how you ever did it any other way.
#2: Don’t Use All the Credit You Do Have
One major factor in determining your creditworthiness is the ratio of how much credit you have available and how much of that available credit you’re using. Why is this important? Having credit you don’t use shows you have things under control financially, you don’t need to rely on credit, you’re able to meet all of your monthly obligations without using
If you have $10,000 available across your credit cards and other lines of credit, and you’re maxed out or even using $8,000 of it, that looks like you might need the credit a little too much. But if you’re only using $2,000 -$3,000 of it, it shows you’ve got bout $7,000 in credit you don’t even need.
See if you can raise your credit limit on cards you already have, pay down balances, or preferably both. You’re trying to free up some credit so it looks like you’re using some of your credit responsibly, and you have more than you need. But be careful, an increased credit limit can just lead to more problems if used incorrectly.
#3: Clear Up Any Inaccurate Items
If you have inaccurate items that are lowering your credit score, it’s your right to have them removed. You’ll have to provide proof that they’re inaccurate, and it will take time to have them taken off, but it can be worth it. The good news is that you only have to do it once, and then keep a closer eye on your credit report from then on.
Be leary of services out there that promise you they can take off a ton of things on your credit report, or make all of the bad stuff go away. You can handle it all yourself, legally, without the need of a “bad credit repair” service. Steer clear of these places, and go the legit route back to good credit.
Save Up for a Down Payment
Another way you can help yourself big time is by saving up for a larger down payment. It not only shows the lender that you’re OK financially, it proves it to yourself. It takes positive monthly cash flow to save up for the down payment, which means you have room in your budget for a future car payment.
Increase Your Monthly Cash Flow
Another great way to make the car buying process easier is to increase your monthly cash flow. You can either get a side job, or cut back in areas where you seem to spend a lot. Anything that frees up the cash you do have, or increases the amount you make each month will help you afford your next car.
Work with an Understanding Dealer
If you have a bad credit and you’re trying to buy a car, sometimes it’s just a matter of going to the right dealer. At Ride Time we help you drive a great car, even with bad credit. Our unique network of lenders specialize in bad credit auto loans, without giving you the short end of the deal. Stop by and talk with us, you’ll be glad you did!