Credit Score FAQ | Harlingen, TX
You need a solid credit score to earn a loan with a low interest rate for your new vehicle. Easier said than done, right? Unfortunately, many consumers don’t know much about their scores or how they are calculated. Here are some frequently asked questions about credit scores that our customers often come to us with:
What is a good credit score?
This is a complicated question with a complicated answer. Different lenders may have different thresholds (i.e., the lowest score that they’ll still award a loan to), and lenders may also use scores from different credit agencies, whose scoring systems can differ. In general, however, most scales range from 350 to 800, and most lenders consider 700 to be a very good score.
Where do I find out my credit score?
When you apply for a loan at Bert Ogden Harlingen Kia, we will pull your credit report and can share the score with you. You can and should also keep up with your credit score using an online resource like Credit Karma or Experian.
How can I raise my credit score?
Have you determined your credit score but realized you may have some work to do before applying for a vehicle loan? Here are the areas you should focus on to raise your credit score:
• Payment history: By paying your bills in full and on time, you can raise your credit score. A credit history with regular late payments is going to yield a low score, but if you right this wrong over time, you’ll see your score improve.
• Account mix: When you have a diverse mix of credit lines (credit cards, mortgage, auto, etc.), lenders see that you can balance your credit well and thus award you a higher score.
• Age of accounts: Similarly, having accounts that have been open longer show a lengthier history to creditors and make them more likely to award you a high score.
• Credit utilization: The amount of credit you have available to you and the amount you are utilizing plays a big part. Keep your credit card usage down, even if you’ve been awarded $10,000 a month or more, and pay it off in full to keep your utilization low and your score high.
For answers to your credit score questions, contact the finance team at Bert Ogden Harlingen Kia in Harlingen, Texas.