shopping for your car
How to Improve Your Credit Score
If you've already been turned down for a car loan or only qualify for high-interest financing, work to improve your credit score before you apply again. Which of these steps will probably help raise your score?
- Regularly pay your bills on time.
- Apply for as many credit cards as possible.
- Pay the minimum balance on all of your credit cards each month.
"A" is correct. Your payment history affects your credit score more than any other factor. It accounts for 35% of your score. Avoid taking on extra debt, and only charge as much on credit as you can pay off in full each month. Strive to pay the credit you already owe. Need help doing this? Get free credit counseling from a reputable nonprofit agency like Guidewell Financial Solutions. Finally, pay off collection accounts that appear on your credit report and dispute any errors you find.