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Even with bad credit, you can still secure a bad credit car loan in Greensboro NC. But you may find your low credit score will result in a higher interest rate and bigger down payment.

The good news is you can do several things to improve your credit score. Doing so will make it easier to get a loan with lower interest and more affordable payments. Here are six steps you can take to improve your credit.

1. Make Sure You Pay Your Bills on Time

If you really want to improve your credit score, the best thing you can do is to start paying your bills on time. Missing a few monthly payments, such as for rent, mortgage and utilities, can cause your credit score to plummet.

2. Pull Your Credit Reports

You should be checking your credit reports at least once a year. Not only will this help you avoid the risk of identity theft, it also lets you see if you have any incorrect derogatory information. If you find any, you can dispute it and, in many cases, have this information removed. This will help to increase your credit score significantly.

3. Keep Credit Cards Below Their Limit

Just because your credit cards have a set limit, does not mean you should max them out. Doing so will have a negative impact on your score. Experts agree you should keep the balance on all of your cards below 50 percent of their limit. At the same time, even if you pay them off, you should keep them open, as well-established open lines of credit have a positive effect.

4. Don’t Keep Applying for Credit

Each time you apply for new credit, a hard credit inquiry is made and appears on your credit report. If you are constantly applying for credit, it can look as though you may be struggling to pay your bills. This will have a negative impact on your credit score. Even if you are applying for a card that may save you money, what little it might save is often offset by the damage it does to your credit score.

5. Pay Off Your Credit Cards First

Working on paying off revolving credit, such as credit cards, will do far more good for your credit score than paying off installment loans, according to Money Magazine. Experts say that paying off a $250,000 mortgage may only increase your credit score by ten points. But, paying off a credit card with a balance of a few thousand dollars can increase your score by as much as 100 points.

6. Stick to One or Two Credit Cards

The current FICO credit score model actually imposes penalties on those who use multiple credit cards. The more you have, the larger the negative impact on your score. You should pick one favorite card and use it for the bulk of your purchases. Keep any others active by making small purchases from time to time and paying them off.

You don’t have to make drastic lifestyle changes to improve your credit score. But the more you know about your credit and credit score, the easier it will be to avoid having to get a car loan with bad credit in Greensboro, NC, and the higher interest rates that come with those loans.