If you’re considering financing a new Volvo car, you will want to ensure that your credit score is in top shape before starting the Volvo financing process. Your credit score plays a large role in determining what kinds of financing options are available, as well as what interest rate you will pay. Here at Fields Volvo Cars Waukesha, our team of finance professionals is happy to share our tips on how to raise your credit score to get better loan terms.
Understand Your Credit Score
Before you start to work on improving your credit score, you first need to find out what it is. Your credit score is a number that’s between 300 and 850 that is based on your credit scores. A number of different factors go into your credit score, including:
- Payment history
- Length of credit history
- Credit utilization
- Type of credit used
Generally, a credit score from 580 to 669 is considered to be fair and a score between 670 and 739 is considered to be good.
Pay Your Bills on Time
Neglecting to pay your bills on time can cause significant damage to your credit score. To improve your credit score, make sure that you’re paying all the bills on time.
Lower Your Credit Utilization
Your credit utilization refers to the amount of credit that you use compared to the amount of credit you have available. If you are currently using a lot of your available credit, it can be detrimental to your credit score.
Don’t Close Old Accounts
Because the length of credit history plays a role in your credit score, if you have old accounts, do not close them. Keeping them open can help raise your score.
Start the Volvo Financing Process in Waukesha
To get the ball rolling on your new Volvo car financing, apply online or pay a visit to Fields Volvo Cars Waukesha. We look forward to helping you find the best new vehicle and financing deals possible!