You can apply for assistance at our Toyota financing center even if your current credit score is less than ideal. However, to be eligible for low-interest offers, it’s best to spend some time to elevate your score. Here are proven ways to raise the score.
Lower Your Credit Utilization Rate
Your credit utilization rate should never be above 30%. This means at no time should you use more than 30% of your allotted credit limit. If you can get the rate to below 30% and keep it below that figure for a significant amount of time, your score will steadily improve.
Limit Credit Card Applications
In the months leading up to a car purchase, refrain from applying for additional credit cards. If you must apply for one, just apply for one card at a time.
Never have more than two active applications under review. In the eyes of lenders, applying for multiple cards makes you a high risk of incurring excess debt.
Don’t Close Old Accounts
Keep inactive accounts open even if you haven’t used them in years. For lenders, the ideal borrower is someone with a long established line of credit. Closing old accounts shortens your credit history.
Limit Hard Inquiries
Financial institutions and money lenders perform a hard inquiry when you apply for a credit card or loan. The hard inquiry shows on your record.
Having multiple hard inquiries within a short duration negatively impacts your score. It’s also a red flag to creditors that you may be taking out additional credit, perhaps more than you can repay.
Browse our inventory at Heritage Toyota Catonsville. Whether you’re interested in the Toyota Highlander or the Toyota Camry, spend some time beforehand to get your credit score up.
