How to Improve Your Credit Score and Common Questions Answered!

Your credit score can be a sensitive subject, especially with the current economic situation.We all know that a higher credit score can mean big savings, but do you really know what affects your number or how to improve it??

Here at Rick Hendrick Dodge Chrysler Jeep, we help people everyday with their unique financing situations and help guide you on the right track to either reestablishing your credit or helping you maintain your current credit score. Besides purchasing a home, purchasing a car is the BEST way to reestablish your score or keep it where you want it to be! Please check out our inventory for specials.

Here are some common questions taken from the Sebtember 2006 issue of Money magazine in the article "How to Scrub Your Credit Score" by David Futrelle.

"You hope to nab a better rate on a car loan by shopping among lenders for the best deal. Will that hurt your score?"
A. Yes
B. No

ANSWER: B.
It's true that applying for several credit cards within a short amount of time will put a ding in your credit score, but lenders know that searching for the best rate on a loan is a smart strategy. Credit score formulas ignore any rate shopping you've done in the 30 days before your score is calculated. Multiple mortgage or auto loan applications within a 45-day period are treated as a single credit inquiry.

"You've got your score, and it's below 700. What can you do to raise it? (Check all that apply)"
A. Get a higher paying job.
B. Pay off fines for overdue library books.
C. Pay your bills on time
D. Make a partial payment on your past due accounts.

ANSWER: B,C and D
Don't get me wrong, having a bigger paycheck is definitely a plus, but it doesn't fix your credit score. Making timely payments is what matters the MOST (this accounts for 35% of the total score, and yes, unpaid library fines count too if they go to collections). Six to twelve timely payments in a row should be enough for you to see a difference in your score. And what happens if you can't clear your debts? Make a partial payment on accounts that are past due. Remember, the longer the debt is overdue, the more it will drag down your score.

For more information on how to improve your score by purchasing a car, please come by our showroom to meet with our certified sales associates who can guide you to a vehicle that meets your needs--and your budget! You can also fill out our online credit application here.

We look forward to seeing you here soon!