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AUTORAMA

How to Improve Your Credit Score

In order to be considered and approve for an automotive loan from a financial institution in the greater Toronto area at a low interest rate, your credit should be in good standing. If you have NO credit history, it is important to begin building a credit history early in order to ensure that lenders have a basis to make a decision upon, should you choose to pursue a loan of any kind from a financial institution. Having a longer credit history is better for your score. If you have existing accounts or credits, keep them open and maintain them with care. Once you've built your credit history, the next step is to maintain it. The main factors that affect your credit are; payment history, use of available credit, the length of your history, number of inquiries made on your credit, and the types of credit that you have. To improve your credit, be sure to make payments on time, making the minimum payment will keep you in good standing. If you have a history of bad credit, and have a credit card with an institution, try to keep your borrowing at 35% of your credit limit. Lenders usually look at how much of your available credit you do use. Using a larger portion of your credit limit portrays a greater risk of living beyond your means. Following these tips can help you rebuild your credit and improve your chances of financing a Toyota, Acura or Mercedes at a lower interest rate.