How to fix having a bad credit score

Nov 18, 2020

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What to do if you have a bad credit score

Having a bad credit score can hang like a weight around your neck when you’re trying to buy a car. Whether you’re just starting out and don’t have a lot of credit history, or if you’re trying to make up for youthful indiscretions, it is possible to fix your poor credit score.

Fixing your credit is not quick or easy. When you apply for a loan through an institution like a bank, you’re likely going to be given a loan with subprime interest rates, or not even get approved. Your past credit history will make the loan provider think that you’re a high-risk applicant. To increase your credit score and show that you’re able to handle your money responsibly, follow some of these steps.

[Related: Should you get a car loan?]

Know your credit score

You may have been told that checking your credit score can actually hurt your score. This is a misconception that has been passed on as a true fact of finance. A hard inquiry, which is done by a lender before they approve you for a line of credit, may affect your credit score, but you checking on your score will not. If you don’t check your score, you may fall prey to an out of sight, out of mind mentality so you might not know that you have a bad credit score.

Make payments on time

When you take out a loan or use a credit card, make sure that you aren’t biting off more than you can chew. If you are using a loan to try to fix your credit score, missing payments is just going to make it worse. Pay off any delinquent accounts or already missed payments, and then set a reminder or see if you can set up auto-pay through your lender.

Get Credit Help at OkCarz

When you have to try to fix your credit so you can get a car, it can feel hopeless. If you visit OkCarz at one of their five locations, you can find a used vehicle that will fit your needs, and you can also get help with financing. You are able to apply for pre-approval online, and OkCarz will help you with the rest.