Automobile Finance Credit Repair | Bob Howard Hyundai

Improve Your Credit Report to Apply for Auto Financing

Bob Howard Hyundai understands that buying or leasing a car or truck in Oklahoma City can be difficult. Particularly, if you have bad credit.

Is it time to buy a new vehicle? Perhaps you're trying to figure out how to fix your credit history for a car lease or loan? Unsurprisingly, your car or truck finance rate is directly tied to your credit history and score. Credit repair requires some hard work. You'll definitely want to keep track of your score several months in advance prior to your car financing application. Increasing your credit overnight is impossible. With some time, however, you can certainly make great increases to a more desirable score. Let us discuss how this can help.

Understanding Your FICO Credit Score

 

Financial institutions often take both FICO credit score and history into consideration when extending an offer. Auto lenders identify the loan eligibility of the borrower by auditing his or her credit score and history.

To identify your score, credit unions review these five factors:

  • Types of credit in use
  • Borrower's Payment history
  • Amount owed
  • New credit data
  • Length of borrower's credit history
  • New Credit

Even with all this info, the fine art of credit scoring may still not be clear. Due to this complexity, banks may use multiple industry-specific factors to assess if you're a low-risk borrower. Remember that your credit score is an important indicator that shows whether you're able to pay your regular installments. This means that you would do best to learn how to fix your credit prior to applying for car financing.

Reasons to Improve My Credit Ranking

Applicants with an ideal credit rank easily qualify for auto loans with low interest rates or zero rate financing. a satisfactory rank also offers you the chance to negotiate during your auto loan. Conversely, those with less desirable credit, however, are often ineligible for a zero interest rate, small down-pay loans, and low-interest financing. In short, you will overpay when you have bad credit.

Useful Tips on How to Increase your Credit:

A bad credit profile is bad news for any auto shopper. But it can easily be improved by following these simple steps:

  • Closely monitor your score.
    • In the months leading up to your vehicle financing, you should pay close attention to your credit report.
  • Look for red-flag items on your report. Fix them, if possible.
  • On-time payments are critical.
  • Every time you don't make a bill payment, your credit score gets a negative hit. By avoiding it, you can increase your credit score.
  • Use a calendar to manage upcoming bill payments.
  • Stay away from card balance transfer.
  • Be extra careful while managing your card balance if you've bad credit.
  • If possible, clear your existing debt before you apply for an auto loan or lease.
  • Track your report and correct errors.
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    • Register for free reports from major credit bureaus: TransUnion, Experian, and Equifax. Free Credit Report
  • File disputes if you find any.
  • Be sure your report looks squeaky clean.
  • Don't apply for other types of credit.
    • Multiple credit applications in a short period of time will negatively impact your score and lower it. Avoid these kinds of actions if you're increasing a less than desirable credit.

Oklahoma City Car Financing at Bob Howard Hyundai

Car shopping is an exciting experience and involves several steps to be successful. For the best financing experience, restore your credit first. A higher score will help you get a better auto financing deal with more wiggle room to negotiate. Fixing your credit cannot happen in a flash; so, give yourself ample time and track your credit for a number of months prior to taking a step forward with buying or leasing a new car or truck.

Improve Your Credit Report to Apply for Auto Financing | Bob Howard Hyundai

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