Especially because automobiles are sold as collateral assets, keeping your financial health a priority is a must when you sign on the dotted line. For one reason or another, your overall credit profile might not be where you want it to be, but our Sherwood Ford team is here to help. Today we’ll show you how to fix your credit score for loan approval on a new Ford model, as well as how you can keep yourself above water all the time!
Low Revolving Utilization
It might be quite a temptation to treat all money in your credit card’s line as yours immediately, but to help your credit score increase, it’s always best to only charge it in emergency situations. We recommend an overall utilization of 20 per cent or lower on each of your cards – so, if you have a credit line of $5,000, your revolving balance should never exceed $1.000. This way, lenders and financial institutions will see that you’re a responsible borrower.
Keep Bills and Balances Paid
The most common factor behind low credit scores and underwhelming financial performance is not keeping your accounts paid off when it’s time to take care of bills. It may seem like a hassle, but ensuring that your various loans, bills and obligations are paid is key to helping your credit rating move back up.
Have Only a Few Accounts
Here’s a little tip for the next time you want to open a new credit card – every time you process an application, your card’s issuing institution will send out a credit inquiry to see your payment history, utilization, and length of credit. Every time an inquiry is found in your report, your score is bound to dip – this isn’t a big deal, as it will rebound with time, but don’t get in the habit of opening new accounts too frequently. Credit companies may see this as detrimental to your overall track record.
Read More: Why choose Ford Canada Credit?
Get credit approval at Sherwood Ford in Edmonton AB
If you’ve had your eye on a new Ford vehicle for some time now, we’re here to help you get approved for financing through Ford Canada Credit. Contact us today to apply, and we’ll be sure to contact you with all the steps you should take!