Good saving habits lead to a better credit score

Many drivers with bad credit feel like there’s no way for them to improve their score, or they see little to no movement even after paying bills on time. But a simple change in spending and saving habits can engineer a dramatic change in the buyer’s favor.

One of the biggest enemies of a good credit score is simply overestimating the amount that they can pay each month. With FICO revealing that on average Americans have 13 separate credit obligations at once, managing finances becomes a juggling act for some consumers. Others are afraid that a big purchase, like a car loan, may only serve to further damage their score.

Gail Cunningham, a spokesperson for the National Foundation of Credit Counseling, revealed a few tips to AOL Autos that could help buyers looking to improve their credit scores.

A simple good habit can help drivers estimate whether or not they can make payments. Once drivers set a target monthly payment, they should ensure that they can actually make that payment on time every month by testing themselves. For example, if the payment was $250 a month, drivers should practice putting $250 in a savings account each month. This is one way to avoid getting into credit trouble – timely payments. The best part of this practice is that after doing this for a few months, drivers essentially have the first few months of a car payment taking care of.ADNFCR-3500-ID-19914772-ADNFCR