A Guide to Your Credit Score - Office Man | Bert Ogden Toyota | Harlingen, TX

A Guide to Your Credit Score | Harlingen, TX

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If you’re purchasing a new car, one of the most important financial factors to consider is your credit score. This three-digit number is a key component when a lender decides to provide you with an automotive loan. Bert Ogden Toyota is here to delve into what a credit score is and help you figure out how to improve yours.


What Is Your Credit Score?

A credit score is a three-digit number that ranges from around 300 to 850 (depending on the scoring company). The higher your score, the better your credit is. It’s determined by a mathematical algorithm that takes multiple factors into account and tends to demonstrate your financial well-being and dependability as a recipient of a loan.


How Is Your Credit Score Calculated?

Many people don’t know what, exactly, goes in to their credit score. Here are the various factors that can raise or lower your score.

• Payment history: Have you been paying your credit card bills and loans on time? This factor is one of the most influential on your credit score. A good payment history means your credit score is likely okay, though other factors do contribute.

• Amount owed: If you have a large loan or a high credit card bill, then your credit score can be low.

• Length of credit history: The longer you have a credit line open, the better your credit score will be. That’s because it proves you can be depended on to pay your bills due to your experience with credit.

• Types of credit: The more diverse your credit lines are, the better your credit score will be. There are multiple types of credit accounts, so make sure your portfolio is diverse.

• New credit: If you have recently opened multiple credit accounts, then your score can decrease.


How Can I Improve My Credit Score?

Improving your credit score can be done, though it might take a bit of time. If you know what your credit score is – and what factors influence it – you can focus on the following tips to help your score increase over time.

1. Pay your bills on time: Timely payments highlight how reliably you pay your bills. It’s one of the main factors lenders look at before deciding to give you a loan.

2. Pay off debt: You want to keep the balances on your credit cards low and try and pay off your debt as well as you can.

3. Apply for new credit only when you need it: Try not to open a credit line unless you absolutely need it – even if you’re trying to get a better credit mix. Unnecessary credit can hurt your score because it can tempt you to overspend and increase the number of inquiries on your credit.


When you’re ready to buy a new car, Bert Ogden Toyota’s finance team can help you find the best loan rate and repayment plan for your credit score and budget.