Most of our clients want to improve and protect their credit ratings. We are dedicated to helping them adopt best practices in credit management. Our team has seen thousands of auto finance cases. Auto finance is our forte.
If we had to identify the mistakes we see most often after handling several thousand auto loan files, here are the top four mistakes we've seen most often.
And if you're concerned, don't worry, we can help. It's not too late to set things right and get back on track!
Late or missed payments are one of the most common mistakes people make when it comes to credit. Credit agencies take your payment history into account when calculating your credit score, and late payments can significantly damage your score.
Overusing credit can also hurt your credit score. Credit agencies look at your credit utilization rate, which is the percentage of your total available credit that you use. Using more than 30% of your available credit can signal a high credit risk to credit agencies.
Closing credit accounts may seem like a good idea to avoid getting into debt, but it can actually hurt your credit score. Credit agencies look at the length of your credit history, and closing a credit account that has a long lifespan can reduce the length of your credit history.
It's important to check your credit report regularly for errors or inaccuracies. If you notice an error, you should report it to the credit bureau immediately so it can be corrected. Ignoring errors can damage your credit score and make it more difficult to obtain credit in the future.
Be warned and try not to repeat these mistakes. Sometimes life is full of the unexpected, and if you've suffered one of these setbacks, don't worry and let's start a credit repair plan with auto financing together today!
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