With the economic uncertainty, it is now more important than ever that operators maintain a stellar credit rating. Those who have recently attempted to purchase new vehicles know that the rules have changed. Before marginal credit scores would pass to get you buying power. What can you do if your credit score falls in this category? We asked Kevin Haag, leasing officer at Brenner Financial. Haag offers the following tips and advice:
The most important thing to note is that there is no quick-fix to improving your credit score, but your score can be improved over time. My advice is to stay away from anyone offering to fix your credit for a fee, mange credit wisely and follow these few small tips:
• Pay your bills on time and if you missed a payment get current and stay current. Recent missed payments affect your score the most
• Don’t close unused credit cards as a strategy to increase your credit score. This can often hurt your score because the scoring models take into consideration the percentage of available credit you have on your revolving debt.
• Try to keep balances low on your credit cards and other revolving debt
• Do your loan shopping for a given transaction within a short period of time. The scoring model distinguishes between a search for a single loan and a search for many new loans, in part by the length of time over which inquiries into your credit occur.
• Review your credit report with the three major credit reporting agencies yearly and object to any information that is inaccurate.
• Be aware that paying off a collection account will not remove it from your report. The agencies will report it as having a zero balance but it will continue to show on your report for up to seven years.
Source: Kevin Haag, Brenner Financial