Tips for Fighting Bad Credit in Dothan, AL
Tips for Fighting Bad Credit in Dothan, AL
Don’t let your credit hold you back! There are several avenues you can take to improve your financial situation. Our finance team here at Toyota of Dothan can help you finance a new or used vehicle with not-so-great credit. With only a few steps, you can be closer than ever to driving home happy in a new Toyota or a great used vehicle. Read on to discover what we recommend for raising your credit score and improving your financial situation.
Check Your Credit Report & Fix Any Errors
The best way to get started is by obtaining a copy of your credit report. This will illuminate what you need to do for your score to improve. It’s simple to request a free copy of your credit report from the three major credit bureaus: TransUnion, Experian and Equifax. After reading your reports, if you spot an error that is negatively affecting your score, it’s possible to fix the error with the bureau that the report came from. Several errors getting your score down? You’ll have to dispute them all separately.
It can be confusing how credit scores are calculated, or what is considered a “good” score. Thankfully, it’s not too complicated when you look at the basics. Every credit score will land somewhere between 300-850. According to NerdWallet, a score of 300-629 is poor, 630-689 is fair, 690-719 is good and 720 and above is excellent. Which factors affect your credit score the most? The main ones are payment history, credit utilization, length of credit history, different types of credit and recent applications.
Make Payments on Time
The best way to raise your score? Meet your payment deadlines. Around 35% of your credit score is based on your payment history, so it’s important to maintain a payment schedule. Payments made 30 days late will result in your credit score lowering.
If remembering due dates is not your strong suit, we recommend avoiding stress and signing up for automatic payments. You can even set up phone notifications to tell you when your bill is almost due. Many bills can be paid digitally these days, so there are many helpful, automated tools to ensure you never miss a payment again.
Stay Below Your Credit Limit
Credit utilization is another big indicator of your credit score: 30% of your credit score is based on your credit utilization, so it’s important to try to stay well below your limit. It’s recommended to use less than 30% of your available credit. If you have already used a large amount of the credit available to you for an emergency or other situation, there’s no reason to panic. Paying off the balance you owe will result in your credit score improving.
Be Patient
The truth is that your score will not go from poor to excellent overnight. Time will help heal your credit score, and spending time to build better financial habits will make it better. It certainly takes patience, but it’s worth it in the end! When your credit score has improved and you’re ready to get started on your path to finding a new vehicle, our finance team can help you finalize your purchase and drive home in a new Toyota. We can’t wait to help you make owning your dream car a reality!
Many dealerships are willing to work with customers who have bad credit. At Toyota of Dothan, we'll do our best to find a plan tailored to your needs. If you'd like to learn more about rebuilding your credit score, contact us today or stop by our dealership at 2285 Ross Clark Circle, Dothan, AL 36301. We welcome customers from Ozark and Enterprise.