The car-buying process has several steps. One of those steps is applying for an auto loan. It is no secret that the better your credit score, the better your chances of receiving a substantial and low-interest auto loan. If you want to increase your credit score before buying a car, here are some tips to try.

The first way you can improve your credit score is by paying off any debts. The more you owe, the lower your credit score. If you are saving up money to put a down payment on a vehicle, think about putting some of this saved-up money towards paying off debt. This can actually be a wiser way to spend your money, depending on your outstanding balances and the sticker price of the car you have your eye on.

Another way you can improve your credit score is by paying all of your bills on time. Even if you can’t pay off your debts, paying any upcoming bills by their due date can raise your score.

Believe it or not, keeping old credit accounts open and raising your credit limits are actually beneficial to your credit score. You want to keep old credit accounts open to show that you have a long history with credit. The older your accounts, the higher your credit score. Additionally, higher credit limits can improve your credit score because a higher limit creates a more favorable ratio of debt owed to debt available. Just be sure to keep these debts down, even when you raise your limits.

If you are concerned about your credit score, you may want to open a secured credit account. Those with no or poor credit can use a small, revolving line of credit of around $500. You pay this cash upfront to the account, and after establishing a solid payment history, you can convert this account to a traditional credit card and your good payment history will carry over with it.

Now that you know how to raise your credit score, you’re ready to start researching automobiles. Consider working with our team at Scotti’s Auto Sales to find top-quality pre-owned cars that are priced right. Our financing team can work with you to help you find the perfect lender and plan for your budget. To get in touch with our team, call 941-924-5885. We are located at 2811 Bee Ridge Road in Sarasota, and we look forward to seeing you here soon.