Getting financed for a car loan is something that most people face at some point in their life. It can be very stressful, especially if you’re not sure you have great credit. Nobody wants to face the embarrassment of a credit denial, and nobody wants to get hit with super high interest rates and non-optimal loan terms. But fixing your credit can be a daunting task if you’re not sure where to begin.
Well, New Years is almost upon us, and with that comes resolutions. Why not try making these New Year’s resolutions for 2017 to get your poor or even mediocre credit back on track, so you can get the credit you need?
How to Fix Your Credit in 2017
Avoid Store Credit Deals
Over the holidays, every store offers special credit deals—save 50% on your next purchase if you sign up for our card! These can be both a blessing and a curse for those with credit problems. On the up side, they can be easier to get than other lines of credit. On the down side, they carry high interest rates and can be very hard to pay down. In addition, every credit application you fill out negatively affects your credit score in the short term.
Avoid Maxing out Your Cards
Especially at the holidays it can be very tempting to dump all your purchases on credit cards. This is just a bad idea. Even if you get great perks and points, the more debt you rack up, the worse your credit will be. In addition, as your debt climbs it quickly becomes impossible to pay it off with minimum payments (which also climb).
Pare Down Your Credit Accounts
Make sure that you carry credit cards whose perks and benefits meet your needs. It doesn’t do you any good to have a credit card that racks up frequent flyer miles…if you don’t take airplanes on a regular basis. Check your benefits and dump the cards you don’t need.
Start a Savings Account to Fix Your Credit
A great way to fix your credit is to start a savings account for those rainy days when you need extra cash. That way you’ll be less likely to rely on high-interest credit lines to pay for emergencies. Just putting away ten or twenty bucks a pay in a savings account, IRA or other rainy day fund can make all the difference when you need it, and you probably won’t miss the cash in the long run.
Pay Your Bills on Time
Work hard to make sure you pay every bill on time. Regular late payments on your bills are one of the fastest ways to ruin your credit, while keeping all your bills current is a great way to improve it! We all need our luxuries, but if it’s between movie night and your car payment…make the car payment and go to the movies next week.
If you need financing for a car and your credit isn’t perfect, there are resources available. Check out Blue Sky Auto Finance and the options we offer to finance your next vehicle, even with bad credit, today.