When January 1 rolls around, East Texans vow to exercise more, lose weight and give up unhealthy habits. There’s another way to shape up in the New Year, and it involves your financial health. You may be thinking of making a major purchase, or you might just be tired of the struggles that come with debt.
If you’re shopping for a new car, we can help you get financing even if you have credit issues. Plus, check out these tips for improving your credit in the year ahead.
Use Technology
Making payments on time is one of the best ways to improve your credit. There are a few ways you can use technology to make that happen. First, set up reminders. If your bank or credit card company offers that feature, have them text or email when a payment is due.
Next, don’t rely on yourself to respond to those reminders. Automate every payment you possibly can. If that makes you nervous, set your card up to pay the minimum balance. When you want to pay more, you can always do it manually. If all you have that month is the minimum, at least you won’t forget and get hit with a late fee.
Reduce Your Debt
Improving your credit is a little like losing weight. Some parts just aren’t any fun. It takes self-discipline over time, but it’s so worth it.
Reducing the amount you owe will go a long way toward improving your credit score. Do these things to reach your goals:
- Stop using your credit cards. That puts the brakes on debt growth.
- Get a copy of your credit report to make sure you know what you owe and who you owe it to.
- Make a payment plan that covers the minimum on each account and pays the rest of your available debt reduction income on the accounts with the highest interest rates, not the highest balances.
- As soon as you pay off one balance, devote that amount to the next on your list until they’re all paid off.
Don’t Finance Small Purchases
It’s tempting to get a bigger TV, dazzling jewelry or new furniture when it comes with a low, low monthly payment. That’s how people get in trouble fast. Make a commitment to only financing large purchases. If you don’t have the money for a TV, start a savings account. It will cost you less to buy it outright than it will to finance and pay interest.
Make it your aim to only finance your home and your vehicle. Then you’ll have better credit and keep more of your hard-earned cash in your pocket.
Understand the Impact of Negative Information
Some information stays on your credit report longer. Here are a few of the time frames:
- Delinquent accounts show up for seven years.
- Car repos stay seven years.
- Chapter 7 bankruptcy follows you for 10 years, while Chapter 13 lasts for seven years.
- If you apply for credit, the inquiry lasts two years.
- Public record reports like liens against your property last seven years.
Buying a Mazda With Credit Issues
At Velocity Mazda, our finance managers work with people from Tyler, Longview and all of East Texas to give our customers the best financing fit and the most competitive rates. If you need a car, we can help you finance it, even if your credit isn’t perfect. Fill out our online finance application or get in touch with us today.
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