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Fix your credit

Rebuilding Your Credit Score
in Cookeville, TN

Trying to recover from a poor credit score? We're here to help! Even if your credit score is considered "good," there is still room for improvement. By following several steps, you'll be well on your way to improving those three digits of your credit score. Don't let your credit score hold you back from purchasing the car, truck, SUV or van you want—learn how to improve your credit score below!

Check Your Credit Score & Fix Any Errors

First things first. If you don't know your exact credit score, start by checking your FICO® score to see where it falls. That way, you'll know exactly what you're working with and how far you need to go to improve your score. FICO® scores range from 300-850, with 300-569 considered poor, 570-669 considered fair, 670 and above considered good, according to Experian.com.

Did you know you have three credit reports? These reports come from the three major credit bureaus called TransUnion, Experian and Equifax. You can check all three of these credit reports every 12 months by using www.AnnualCreditReport.com.

Sometimes, you may discover an error on your credit report. In fact, incorrect credit reports are more common than you may think. If you suspect that your score isn't 100% accurate, just remember that an error may be the culprit. Errors on your report may include incorrect personal information regarding your Social Security number, name, birth date, address, etc., incorrect account numbers or accounts that you don't recognize.

If you find that your report shows an inaccurate score, you can dispute these errors online, by phone or in writing. You'll have to do this for each credit bureau, since there may be differences in each report, and every error will require a separate dispute. Once these are resolved, your score should improve.

Make Payments on Time

If your payments are late or you don't pay the full amount when it's due, this can damage your credit score the most and make potential lenders wary. Did you know that 35% of your FICO® score is based on your payment history? That number alone should show you how crucial it is to pay on time, every time. If you have trouble meeting deadlines, set a reminder on your phone or set up automatic pay so you won't have to worry about missing another payment.

Stay Below Your Credit Limit

Credit utilization, which means how much of your credit limit you are using, makes up about 30% of your FICO® score. This large percentage of your credit score should also show you how important it is to stay below your credit limit. Both Experian.com and Credit.com say it's best to stay below 30% of your credit utilization.

Keep Your Accounts Open & Don't Apply for Unnecessary Credit Cards

The longer you keep your credit accounts open, the better. Five or more years are considered a good average age for a credit account to be open, according to Credit.com. For those just starting out with zero credit history, it may take three to six months for your credit history to begin showing. Another mistake you'll want to avoid is applying for too many credit cards in a short amount of time. Doing so doesn't look good to lenders and may hurt your credit score.

Be Patient

At the end of the day, there's no way to hurry the process; you'll have to be patient and let time do the rest. By following these steps faithfully and developing solid credit habits, you'll see improvements in the long run.

Many dealerships are willing to work with customers who have a less-than-ideal credit score. At Overdrive USA, we'll do our best to find a finance plan that works for you. Fill out our finance application to get started! If you'd like to learn more about rebuilding your credit score, contact us today or stop by our dealership at 1510 Interstate Dr, Cookeville, TN 38501. We look forward to serving our customers near Crossville and Sparta.

https://www.experian.com/blogs/ask-experian/fico-score-what-it-is-and-why-its-important/

https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/improve-credit-score/

https://www.credit.com/credit-repair/how-to-improve-credit-score/

https://www.nerdwallet.com/blog/finance/how-to-rebuild-credit/

https://www.nerdwallet.com/blog/finance/raise-credit-score-fast/