It’s Car-Buying and Home-Buying Season. How Do I Improve My Credit?

One of the first steps to owning a home or buying a new vehicle is figuring out your finances, and that includes understanding your credit. Good credit can make the process easier, especially if you've had trouble securing a loan in the past. Here are some useful tips to help you get started.

  1. Obtain a copy of your credit report. Before you can fix your credit, you need to know what is in your credit report. You're entitled to a free report from each of the three credit bureaus once a year, so get your hands on a copy right away.
  2. Fix errors. There may be inaccuracies in your credit report, and it's up to you to fix them. This process can take some time so don't delay.
  3. Pay your bills on time. This step is critical. Create a calendar and set reminders so you can stay current. Never miss a payment.
  4. Pay more than the minimum payment each month. To chip away at your balances faster, always pay more than the minimum requirement on your revolving credits each month. You'll also save more on the total amount of interest handed over to your bank. 
  5. Maintain low balances. As a general rule, avoid carrying a balance that is over half your limit on each card. Pay off the balances as soon as you can. 

At Hometown Auto, we offer quality vehicles with low down payments and affordable monthly payments for buyers with bad credit or no credit history. We can help you fix your credit by building up a positive credit history to benefit your financial future.