Steps for Credit Repair

At Honda of Bay County, we work with a variety of drivers to help them finance the car of their dreams. While we assist individuals with varying credit histories, some may wish to boost their score up a bit.

If your credit is not where you’d like it to be, there are steps for credit repair that you can take. Learn a few below, and don’t hesitate to contact our Honda dealer near Panama City, Springfield, and Callaway, FL, if you have any questions.

Repairing Your Credit in Four Easy Steps

Checking Credit Score

The information on a credit report gets compiled and given a score between 300 and 850. The higher the score, the better. The number is based off your credit history, which includes:

  • Repayment history
  • Number of open accounts
  • Level of debt

As we mentioned, if your score isn’t as high as you’d prefer, you can raise it by repairing your credit. Here are a few tips to do just that:

1. Review Your Credit Report.

Before you can repair your credit, you need to know where you currently stand. You can do this by requesting reports from the three major credit bureaus:

  • Equifax
  • Experian
  • TransUnion

Then there are sites that you can utilize to get your credit score (often for free) throughout the year. These can give you a snapshot of where you stand and what you would need to do to boost your credit score, if that is applicable.

When you receive your full credit report, review everything carefully. If there are any possible errors, you can dispute them online. It may take a little bit of time to resolve the issue, but it’ll be a big help when repairing your credit.

2. Pay All Your Bills on Time.

Finance Calculator

Once you know what your credit history is like, and how you can mend it, you’ll want to look into any bills you may have.

Whether it’s rent, student loans, or other major payments, they need to be paid off every month (or whenever they are due). This needs to be done consistently, so as to give your credit score the boost it needs.

3. Pay Down Credit Card Balances/Increase Credit Limits.

Additionally, you’ll want to pay down credit card balances as best you can. If you pay it off completely, that’s even better. Just don’t close the credit card, as that can have a negative effect on your overall score.

You can also increase credit limits to help improve your available credit/credit used ratio. For example, if you owe $2,500 on a $5,000 card, you’re at 50% capacity. If you increase the limit to $7,500, though, you’re looking at a 33% capacity. The lower the ratio, the better for your credit score.

4. Avoid Applying for New Credit.

Just as you don’t want to close any credit cards, you also don’t want to apply for new credit.

Every time you apply for credit, it’s listed on your report as a “hard inquiry.” If there are too many of those within the span of two years, your credit score will lower even further. This could delay your goal of elevating your score, which you want to avoid.

Learn How to Repair Your Credit Today

There are even more ways to repair your credit, which we can go over at the Honda of Bay County Finance Center.

To speak with one of our experts, don’t wait. Call or visit our Honda dealership near Panama City, Springfield, and Callaway, Florida, today!