For consumers with bad credit, improving a credit report can be the key to getting a car loan at a great rate. Yet there’s also a lot of misinformation out there about the best ways to do this.
Consumers should know right off the bat that the absolute best way to improve their scores is to use credit responsibly. By taking on a credit card or car loan and making the monthly payments on time, they may see their score rise dramatically over just a few months. Other strategies that many claim work can be minorly helpful, such as disputing inaccurate or misleading statements on the report, but there is not true cure-all for bad credit.
KIII TV Channel 3 recently listed a few of the more popular myths. Among them was that closing out an old and inactive account could raise a score. In actuality, the reverse is true. Closing out an older account could make a consumer’s credit history appear artificially shorter, thereby lowering their score.
Another myth is that bad credit automatically disqualifies a consumer for a car loan. In many cases, these drivers are actually pre-approved for a loan. They can find out more about what types of rates they can get by applying for quotes online.