If you’re planning to buy a car in six months, now is the time to start “grooming” your credit. A higher score can save you thousands of dollars in interest on your car finance BC deal.
Strategic Moves to Boost Your Score
- Lower Your Utilization: Try to keep your credit card balances below 30% of their limits.
- Don’t Close Old Accounts: The “age” of your credit history matters.
- Fix Errors: Check your Equifax report for any outdated or incorrect late payments.
The “Mix” of Credit
Lenders like to see that you can handle different types of debt. If you only have credit cards, adding an installment loan (like a small personal loan or an existing car loan) can actually help your score over time.
Avoid New Debt Before Your Car Purchase
Don’t go out and buy a new sofa on a payment plan right before applying for bad credit car financing Canada. New inquiries and new debt can temporarily dip your score.
Planning for the future? Even if your credit isn’t perfect today, we can help you find a path to ownership. Contact Us for a Free Credit Consultation.
