Increase Your Credit Report to Apply for Auto Financing

how to increase your credit report for auto financing

Car and Truck Finance Credit Improvement

Shawnee Mission Kia appreciates that buying or leasing a car in Mission KS is not always easy. Especially, if you happen to possess a less-than-desirable credit score.

Is it about time for you to finance a new car, truck or SUV? Perhaps you are trying to determine how to repair your credit ranking for a car or truck loan? You may already know that your auto lease or loan rate is directly tied to your credit history and score. Credit repair may take some hard work. You will probably want to keep track of your score a few months in advance before your car finance application. Improving your credit overnight is impossible. Given enough time, however, you can definitely make great strides to an above average score. Let us see how this can help.

Your FICO Auto Credit Score Essentials

Financial institutions typically take FICO history and credit score into consideration while making their decision. Auto lenders identify the a borrower’s loan or lease eligibility by auditing her or his credit history and score.

To provide you with a score, credit unions consider these following five factors:

  • Amounts owed
  • New Credit
  • Length of borrower’s credit history
  • Types of credit in use
  • New credit data
  • Borrower’s Payment record

Despite having all this detail, the fine art of credit scoring is still not very clear. Because of the complexity of it all, banks may use several industry-specific factors to assess if you are a low-risk borrower. Don’t forget, your credit score is an important factor that shows if you’re able to pay your regular installments. This means that you would do best to learn how to repair your credit before applying for car financing.

Reasons to Restore Your Credit Ranking

Applicants with a satisfactory credit ranking may easily qualify for auto loans with low interest rates or financing at a zero percent rate. A good score also presents you with an opportunity to negotiate during your car loan or lease. Contrarily, those with bad credit, however, often are ineligible for a zero interest rate, small down-pay loans, and low-interest financing. In brief, you may be required to overpay when you have a weak credit ranking.

Helpful Hints for Repairing one’s Credit Score:

A ugly credit profile is hardly desirable news for any vehicle shopper. But you can easily improve it by adhering to these simple steps:

  • Closely monitor your credit.
    • Pay close attention to your credit report in the months prior to your vehicle financing.
  • Look for red-flag items on your report and try to fix them.
  • Make on-time payments.
  • Each time you miss a bill payment, your credit profile gets a negative hit. By avoiding it, you can improve your credit score.
  • Use calendars to remind yourself about bill payments.
  • Stay away from card balance transfer.
  • Be extra careful while managing your card balance if you’ve bad credit.
  • If possible, clear any existing debts before taking on an auto loan or lease.
  • Track your report and correct any errors.
    • Sign up for free reports from major credit bureaus: TransUnion, Equifax, and Experian. Free Credit Report
  • Be sure to file dispute if you find any.
  • Make sure your report looks squeaky clean.
  • Do not apply for other types of credit.
    • Multiple credit applications negatively impact your score and lower it. Avoid these types of actions if you’re restoring a credit ranking.

Mission KS Vehicle Financing at Shawnee Mission Kia

Car, truck, and SUV shopping can be an exciting journey which involves a number of steps in order to be successful. For the best financing experience, better your weak credit first. A higher score will help you get a better car or truck financing deal with more wiggle room to negotiate. Bettering your credit history will not happen overnight; so, give yourself some time and track your credit for a few months before taking a step forward with buying or leasing a new automobile.