There are a number of ways you can rebuild your credit and raise your FICO score in the upcoming year.
What we do
At AutoNet Financial, we are in the business of helping our customers reestablish their credit by financing either a new or a newer pre-owned vehicle with a bad credit car loan through high risk lenders. But in addition to using a bad credit auto loan to raise your credit score, there are a number of other things that you can do to ensure that 2010 is a better year than 2009.
TransUnion
TransUnion TrueCredit division’s vice president of consumer education had this to say about consumers giving themselves a fresh start: “Consumers should approach the New Year as a time to start fresh and begin managing their credit more closely. While it can be overwhelming, now more than ever, consumers need to play a more active role in their financial management to ensure they are in the best possible position with lenders.”
In a follow-up to that statement, TransUnion listed the following credit tips:
1. Always pay your bills on time.
While it may sound like a no-brainer, making payments on time is essential whether consumers are trying to boost or maintain their credit score. Yet, TrueCredit’s 2007 survey revealed that one in four (25 percent) respondents had missed making one or more on-time bill payments.
2. Don’t overspend: keep debt below 35 percent of your limits.
Although it can be tempting and easy to overspend, it’s important for consumers to keep their credit card balances low and not to max them out. Part of a lender’s evaluation includes reviewing a consumer’s available credit. If consumers are nearing or have over-extended their credit, it may impact their ability to be approved for a loan at a competitive rate.
3. Keep tabs on your credit report.
In order to maintain a “healthy” credit score and to position yourself best with creditors, it’s important for consumers to monitor their report regularly to provide an up-to-date view on credit card activity and debt. It also enables consumers to identity possible signs of fraudulent activity, as the potential for identity theft remains significant.
4. Monitor leases and loans closely where you are the co-signer.
When consumers open a joint account or co-sign a loan, they are taking on legal responsibility for the account. Any activity on these shared accounts, good or bad, will be reflected in both credit reports.
5. Long-standing credit card accounts can help your credit score.
Consumers should be cautious when thinking about closing credit card accounts where they have been making punctual payments over a long period of time. In addition to lowering your available credit, canceling old credit accounts can also ultimately lower your credit score by making your credit history appear shorter.
More advice
Although following this advice can certainly help you improve your FICO score, it may not be enough to enable you to buy a car with a conventional loan. If this is the case, then you might want to follow in the footsteps of the many hundreds of consumers that Auto Net Financial has helped.
You see, at Auto Net Financial, we are in the business of helping consumers with bad credit find a dealer that can get them financed so that they can begin to reestablish their auto credit and improve their credit scores. These affiliate dealers are knowledgeable and will treat you with the same respect that they treat every customer that walks through their doors. If you have any questions that our web site can’t answer, feel free to call us at the toll free number listed on our site. Our customer service representatives are experienced in automotive special finance and will answer your questions and guide you through the bad credit car loan process.
For more information on the bad credit auto loan process, please visit our web site at www.autonetfinancial.com.
