Five Ways to Improve Your Credit

Get Car Financing
Even with poor credit.

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, - January 12, 2018

Qualifying for an auto loan with bad credit can be challenging, but no matter how low a credit score goes, it can always be improved. Here are five ways to improve a credit score.

Car Loans are Great for Improving Credit

Consumers who need a bad credit car loan should look at it as an opportunity to boost their credit score. Making loan payments in full and on time will improve credit over the life of the loan, provided borrowers keep up with their other obligations. Ideally, this helps ensure the borrower qualifies for a traditional loan next time around.

Ensure Credit Reports are Accurate

One of the first things a borrower should look at when they’re contemplating a car loan is their credit report. Because lenders use this information in approval decisions, it’s in the borrower’s best interest to make sure errors aren’t dropping their credit score. Consumers can dispute mistakes and get them removed, which can lead to a score increase.

Utilize a Secured Credit Card

Unsecured credit cards can be tough to get if someone’s struggling with credit issues. Secured credit cards, however, are easier to obtain because the card holder deposits their own money as collateral. The amount deposited becomes the credit limit, and it can’t be exceeded. By staying current on monthly payments and keeping their credit limit in check each month, cardholders can begin to repair their credit.

Build a Tidy Payment History

Of the five factors that go into making up a credit score, payment history carries the most weight. A borrower who’s already struggling with credit issues typically has one or more late payments bringing down their score. The best way to combat this is with full, on-time payments.

Keep Credit Utilization Low

The second thing a lender weighs when they look into a potential buyer’s credit report is what they owe. This includes debts and credit utilization ratio (a person’s total amount of credit card balances divided by their limits). Borrowers whose credit utilization is at 30 percent or below are looked on more favorably by lenders. To really begin improving credit, bring that ratio to zero.

Look for the Right Lender When the Time Comes

The chances of qualifying for a traditional auto loan increase as your credit begins to improve. For now, if you’re struggling with bad credit and need a vehicle, CarsDirect wants to help. Let us guide you toward a local dealer from our nationwide network of new and used special finance dealers. It’s simple to get started by filling out our no-obligation, free auto loan request form online. Take the first step now!

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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