Good credit is a nice thing to have. With good credit, you can get loans easier and at lower interest rates. If you are considering a car purchase soon, it might be a good idea to check your credit score so you aren’t surprised when it comes time to apply for a loan. You can get your credit score for free from a number of websites. A popular one is www.CreditKarma.com, which gives you your credit scores from both Transunion and Equifax. Credit scores generally range from 300 to 850. If you find that your credit score is lower than 700, it’s a good idea to see if you can build it up a little. Here’s a few things you can do.  

Request a higher credit limit

This may seem counter intuitive but if you get a higher credit limit from your lender, your credit score may go up. This is because of a factor called “credit utilization ratio.” This factor is the ratio of how much credit you use compared with how much you have available.  So, how do you get a lower credit utilization ratio? The best way is to pay off debt!

Look for wrong information

Your credit score is calculated based on information in your credit reports. Your reports are like little biographies of your financial past but here’s the rub, sometimes they are wrong. Go to one of the free credit report sites and get copies of your credit reports from the big three: Equifax, Experian and TransUnion. Then look to see if there are any mistakes. If you find any, contact the creditors involved and ask them to correct the errors.

Request deletion of negatives
 
Just as creditors have the power to add positive data to your credit report, they also have the ability to delete stuff. According to Mr.Ed, an Arizona-based automotive financing company, they are generally reluctant to do this, but if you are a good customer and have a good argument why the negative information should be removed, they might do it.

Here’s a good example: If you missed a payment because of medical reasons, mention that. The key here is to be able to show that the negative data isn’t a true reflection on you. If you’re a longtime customer, remind the person how much the company should value your business and how many offers you get to go elsewhere.

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