Are you able to repair a bad credit score?
Your credit score can make or break your ability to purchase a vehicle, even if you’re just looking for a used car. Drivers who are struggling with bad credit might be wondering if there is a way to repair their credit score. Of course, over time you can begin to fix a poor credit score, which can make it easier to qualify for loans. The best way to begin to repair your credit score is to follow these tips, which will help get you started on the road to having secure finances.
The first step to improving your credit score is to get a copy of your credit report. Every year, you’re entitled to a free credit report from the three different reporting bureaus. Viewing these reports will not damage your credit score, and there may even be some mistakes on the report that could raise your score if you dispute them. If your credit reports are correct, it doesn’t mean that there’s nothing you can do to raise your score. One thing that you can do is pay off any late or missing payments, as well as any current balances. If you have missed payments that are in collections, just paying them off won’t erase the mark from your credit report so it might take some time before the payment is completely off of your record.
Once everything is paid off, you can begin rebuilding your credit score by making payments on the accounts you already have open. While you’re in the rebuilding stage, do what you can to not close or open new accounts, as both of these can affect your credit score. As long as you pay off the minimum or the total balance on your accounts every month, you should be able to see improvement on your credit score over time.
While it can be difficult to wait to purchase a vehicle while you repair your credit score, if you’re still paying off the balance on other loans or cards, your best bet is to wait it out. However, if you’re in a financing situation where you’re looking to rebuild your credit and you need to purchase a vehicle, OkCarz is able to help. Apply for pre-approval online to see what you’re able to OkCarz can help you fix your credit score and work your way into being able to qualify for traditional bank loans.