Tips on How to Fix Bad Credit

May 15th, 2014 by

How to Fix Bad CreditHaving bad credit can make your life very difficult. You won’t be able to buy a home and even renting an apartment can be tricky. Fortunately turning a credit score from low to high isn’t impossible. Crestview Chrysler regulalry helps people with bad credit get approved for auto financing, so we know a little something about how to fix bad credit. Here are some tips.

Finance a New or Used Car

If you have bad credit and need to rebuild your credit score, one of the easiest ways is to take out an auto loan. By showing you can successfully make routine payments on a large purchase like a car, your credit will get a big boost. Of course, you may have had trouble securing financing from other lenders, but Crestview Chrysler is happy to work with you.

Check Your Credit History

Everyone is entitled to a free credit report once a year. If you’re planning to improve your credit score, you have to know where you start. When you get the report, be sure to look for any inconsistencies or errors. That may give you a boost right there. This is also a good time to dispute any old debt. You never know when you might be forgiven.

Get a Secured Credit Car

There are some people who have no credit or have made some serious mistakes in their pasts. If you’re in that situation and can only go up, a secured credit card is a great place to start. You are the one securing the credit by putting up a certain amount as collateral; if you don’t pay your bill, the company takes it out of the deposit.

Unlike debit cards, most secured credit cards report to the credit bureaus. Once you’ve shown you can manage the secured card, the company will likely turn it into a standard card. Just be sure to continue to make regular payments to keep building your credit.

See a Credit Counselor

Even if you’ve got in over your head and don’t know where to start, all is not lost. Contact your creditors or an actual credit counselor. They will be able to work with you, and it won’t negatively impact your credit score.

Posted in Car Buying Tips