MAZDA Financing Tips: How to Raise Your Credit Score

Are you planning on taking out a Mazda financing plan for your next car purchase but you’re concerned about your credit score? Here at Med Center Mazda, we understand that a good credit score is crucial for securing favorable financing terms. These are some tips to help you raise your credit score and enhance your car-buying experience.

Regularly Check Your Credit Report

Start the financing process by obtaining a copy of your credit report from major credit bureaus like Equifax, Experian, and TransUnion. Review the reports for any errors or discrepancies that could negatively impact your score. Dispute these inaccuracies and ensure that your credit history is accurately reflected before attempting to get pre-approved for the loan.

Pay Bills on Time

Your payment history is one of the most significant factors affecting your credit score. Make it a priority to pay all your bills, including credit card bills, loans, and utilities, on time every month. Late payments can have a significant impact on your credit score, so strive to pay bills promptly.

Reduce Credit Card Balances

High credit card balances relative to your credit limit can negatively impact your credit score. Aim to keep your credit card balances low — 30% or lower, ideally — and pay off any outstanding balances whenever possible. This demonstrates responsible credit management and can also improve your credit utilization ratio.

Limit New Credit Applications

Every time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily lower your score. Be selective about applying for new credit and opening multiple accounts within a short period.

Start Your MAZDA Financing Journey in Pelham, AL

Here at Med Center Mazda, our team of friendly finance experts is ready to match you with a financing plan that works best for your situation. Stop by our dealership today and get acquainted with the 2024 Mazda lineup and take a test drive!