One of the best ways to reduce the cost of buying a new Sprinter van for sale in Salt Lake City is to obtain an auto loan when your credit score is at its highest. The problem is that many Utahns are not aware of what their credit score is at the time of application, let alone understand how to increase it soon enough.
If you are planning to buy a Mercedes Sprinter soon, follow the tips below to be as creditworthy as possible by the time you speak with a dealer.
Remove Incorrect Items in Credit Reports
First of all, make sure that your credit reports are 100% accurate. Go to annualcreditreport.com to get a statement from each of the leading credit reporting bureaus: TransUnion, Equifax, and Experian. The federal government set up this website to allow average individuals to review the items in their credit reports and fix inaccuracies ahead of a loan application.
Also, find out your current credit score using a free tool online. There is no guarantee that the score you find is the same one an auto lender considers when offering you an interest rate, but at least you have an idea about where you stand.
If you feel like your credit score is not high enough to merit good offers, use the time to your advantage to increase it before visiting a dealer for in-house financing.
Pay Your Credit Card Bills in Full Punctually
Payment history and credit utilization are two of the most significant factors credit scoring platforms usually consider. Settling all of your bills on time hits two birds with one stone. Doing so allows you to show creditors that you are a responsible payer and that you do not owe much.
Ideally, your credit card balances should be anywhere between 7% and 10% to earn brownie points for major scoring systems like FICO. And if you really can’t pay your bill on time, do not be more than 30 days late to minimize its impact.
Do Not Acquire New Debts
Avoid taking out a new loan before seeking in-house auto financing. The new debt, regardless of where you use it, negatively impacts your credit standing. It can increase your credit utilization ratio, decrease the average age of your accounts, which is another influential variable.
Shop Around Within 14 to 45 Days
Applying for an auto loan involves a hard inquiry, which happens when a lender checks your credit information. One hard question hardly lowers a credit score, but multiple ones can produce a noticeable reduction.
Fortunately, common credit scoring platforms count several hard pulls done within 14 to 45 days as one, so time your applications strategically.
Credit building is a months-long, if not a years-long, endeavor. The amount of time you need to bolster your score to a level you desire depends on your current credit standing. If yours needs a lot of work, be patient before buying a Mercedes Sprinter, for the amount of money you can save on interest will be worth the wait.
