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How To Improve Credit Score in Ancaster - 5 Tips

How To Improve Credit Score in Ancaster - 5 Tips

Your credit score has a huge influence over the type of Ancaster auto loan you are eligible for, how much you can borrow and at what rate. Therefore, improving your credit score as much as possible ahead of time can make a huge difference.


That’s what we are going to cover today.


We have 5 simple tips to improve credit score. Start them right away as it will take a couple of months to begin having an effect. Then, when you’re ready for a car loan in Ancaster, you should already be feeling the benefits.


1.   Clean up your act


A financial audit sounds serious but can be as simple as creating a spreadsheet of all your income and outgoings and all your debt. This gives you a clear picture of where you are, what you owe and what you could afford to pay each month. This is the first step to improve credit score!


Check this against your credit report to make sure there are no debts you’re missing.


While you’re there…


2.   Check your credit report for accuracy


Mistakes on credit reports are a very common reason people are refused an auto loan. While you’re checking for debts, also check everything on that report to make sure it’s 100% accurate.


Dispute any mistakes and have them corrected by the organization who made the entry. If they don’t respond, request the credit bureau follow up. You have a right to be represented accurately so enforce that right.


3.   Set up automatic payments for everything


Automatic payments are a genuine lifesaver. They ensure you never miss a payment and keep your payment history clean. As that payment history can be up to 30% of your credit score, this is definitely something you should do right away.


Automatic payments also make life easier. Set it up, make sure there are sufficient funds to pay everyone and then forget about them. Easy!


4.   Pay off expensive debt first


If you’re managing multiple debts, pay off the most expensive first. When you perform your financial audit, order your debts with the highest interest rates first and lowest rates last.


Prioritize paying the most expensive debt first. That way you will get everything under control faster and pay out a lot less in interest.


5.   Only ever apply for credit you’re going to use


If you’re shopping around for a credit card or car loan in Ancaster, only apply for the product you want. Don’t apply for a range of products just to see what’s best. Use pre approval tools for that.


Pre approvals use soft inquiries which do not impact your credit score. Credit applications use hard inquirers that does impact your credit score. Most financial products have some form of preapproval tool to let you know whether you’ll qualify or not before you apply.


Improving a credit score is measured in weeks and months and not in days. That means planning well in advance of any auto loan application to stand the best chance of being accepted at a competitive rate.


The best idea is to do this now so that by the time you want a loan or other credit, these tips are already taking effect.


We will use all our skill and experience to deliver the lowest possible Ancaster car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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