There will always be a market for quality used vehicles, as many of them are still able to give you plenty of years of high performance and durable versatility. If you’re in the market for a used car, SUV or truck, but worried that your credit might not be up to snuff, don’t worry! Today, we want to show you some helpful tips on how to increase your credit score for a car loan – knowing these, you can take some steps for financial health, and get behind the car of your dreams right here at Poulin Auto Sales.
How do car loans work at a used dealership?
When you apply for financing on that used model you’ve been dreaming of, your credit score will be sent to a few institutions in our area to verify which APR you’re most likely to receive on your loan, depending on the length of your payment term and overall price of your car. By signing off, said bank or credit union will pay us for your car up front – from there, you’ll enter into the loan term.
With that being said, it’s important to have as good a score as you can to start so you can get a better rate – here’s how!
Make Payments on Time
A big factor behind a high credit score is making sure all your debts are paid on time to avoid late fees – in the eyes of creditors, making your payments early or on time says that you’re trustworthy when it comes to finances.
Keep Revolving Utilization Low
A common rule of thumb is to keep your revolving balance on your credit cards under 36% for any given term. Any higher, and it could be a red flag for banks that you might be a tad irresponsible with a credit line, so keep spending on credit cards to a minimum, if possible.
Avoid Applying for Too Many Loans
Every time you apply for a credit card, long-term loan, or financing on collateral items, your credit score might take a hit because inquiries are sent to your credit file. This isn’t an issue, but if you have too many accounts opened in a short period of time, that could be bad news for your final score.
More Tips: Should I lease or finance a used car?
Test drive a used vehicle at Poulin Auto Sales in Barre VT
To get a good idea of where your credit stands, sites like WalletHub and Experian can check it for free! If you’re satisfied with where you stand, be sure to check out our current inventory and schedule a test drive with our Poulin Auto Sales team today!