When you apply for a loan through the Toyota financial department at Hall Toyota Virginia Beach, we're going to have to look at your credit score. It's just how these things work.
If you're looking for a way to boost your score before applying for financing, our tips could help you.
Make Payments on Time
When you make payments on time, you show a potential lender that you are reliable. So if you have existing debts and credit cards, keep making those payments before the due date each month. Late payments can cause your score to drop while costing you extra money in fees and penalties.
Pay Off Any Debts You Can
If you have a debt that you can pay off, do so. Paying off debt can help your score rise.
Don't Close Credit Card Accounts
Some people close out credit cards they don't use, but that can harm your credit score. Keeping accounts open for a long time can reflect well on you, improving your score.
Additionally, having credit that you don't use can keep your total credit utilization rate low, further improving your score.
Opt Into Credit Line Increases
If your credit card company offers an increase in your credit limit, take it. Having a lot of available credit and not over-utilizing it can help boost your credit score.
For example, having $10,000 in credit card debt and $20,000 in total available credit reflects worse on you than having $10,000 in debt and $50,000 available credit. Lenders want to see you use credit, but not overuse it, so total credit utilization can have a significant effect on your credit score.
Learn More from our Toyota Financial Experts
If you're ready to learn more about financing options and buying a new Toyota vehicle, visit our new car dealership in Virginia Beach. We're ready to answer all your questions.
