264 × 350We've all been through some tough times, and we understand sometimes your credit may not be the best. The great thing is, you can always rebuild your credit to get it to where you would like! Try out these tips to improve your credit:

1.       Review your credit report

The first part of rebuilding your credit is understanding where you’re struggling credit-wise, and learning what you can do financially in order to keep up on your debts. In your credit report, you’ll see your score on payment history, credit age, credit mix, credit utilization and new credit.

 

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2.       Pay all bills on time

Did you know late payments can stay on your credit reports for as long as 7 years? One of the biggest steps to improving your credit is to ensure your payments are on-time. If you have any overdue balances, ensure you pay those off first and make the remaining payments on time even if it only the minimum. If the minimum balance is tough to pay, consider speaking with your creditor about other options that may work better for you. It never hurts to ask!

 

3.       Lower your credit utilization
How much credit you’re using is another huge factor in determining your credit score. For example, if your credit limit is $1,000 and you’re using $950 a month, that’s a credit usage of 95%. Many credit experts say 30% utilization and lower is ideal. To fix this, look at what you’ve spent with this credit, and if it is something you need. If you pay bills, see if there are a couple you can pay without using your credit – even if that means switching some payment due dates around. Ideally, you’ll want to pay for things with your credit that’ll you can easily pay back in full when your bill comes around.

 

4.       Consider a credit-builder loan
A credit-builder loan exists to help you improve and build your credit. These loans can be provided from you credit union or local bank. With an agreed set amount, the bank will hold on to money you agree to pay in payments, and will release the money when this loan is paid back in full. You must show proof of income and that you are within your financial means to pay it back.

 

5.       Be patient
Rebuilding your credit to where you want it to be can take a while, but with taking just one step a time, improvement can be seen. Ensure not to open new accounts right away, attempt any hard inquiries, or anything else that has a damaging effect on your credit until you know you can. Remember to keep up with checking your credit report so you can be sure you’re always on track.

 

Our credit experts here at Speck Nissan of Sunnyside proudly work with most credit situations including bad credit, bankruptcy, first-time buyers and more. Learn more here!