1. Check Your Credit Report & Fix Any Errors

The first step to take when attempting to rebuild your credit is to know where it stands. There are three major credit bureaus: TransUnion, Experian and Equifax, and it's important to know your score with each of these. This will help you find a starting point to improve from. It's worth noting, however, that sometimes there are errors on your credit report. You can appeal these errors, but you'll have to do so separately for each credit bureau since they might be different for each one.

The most widely used score that lenders use is the FICO^® Score 8. This score ranges from 300-850. A poor score is between 300-569, a fair score is 570-669 and anything above 670 is considered a good score. Our goal is to get you into that upper range.

2. Make Payments on Time

Making sure that each payment goes through on time should always be your first priority when it comes to maintaining your credit score. Late payments often have the strongest negative impact on your credit, making up 35% of your total FICO^® score. Enrolling in automatic payments or setting reminders on your phone can help you keep up with payments so that none of them are late.

3. Stay Below Your Credit Limit

Another significant portion of your FICO^® score, making up 30% of it, is your credit utilization (or, how much credit you're currently using). It's a good idea to stay below 30% of your credit limit so that you can avoid making a habit of exceeding your credit limit. If you find it difficult to stay within your terms, you can always request for your limit to be increased.

4. Be Patient

Another important thing to remember is patience. Rebuilding your credit takes time, but it's always worth it. Setting good habits and disputing errors are the most tangible actions you can take, but they won't give you fast results overnight. When you feel better about your credit score, feel free to stop by our offices and let us help you secure a great deal on a new or used vehicle!