Tips for Fighting Bad Credit in Lafayette, LA

If you’re struggling with the effects of bad credit, you may feel discouraged. A low credit score can seem like a dead end, but take heart — there are steps you can take to improve your credit. Here at Giles Subaru, we’ve helped many customers with less-than-ideal credit over the years, and we’re ready to help you, too. Your situation is not uncommon; there are many people in need of reliable transportation that are being held back by their credit score. To start improving your credit today, take a look at our list of steps below, and if you have any questions, don’t hesitate to contact us or stop by our finance center. Our team will be happy to talk through your options and help you along your path to a new Subaru or quality used vehicle.

Check Your Credit Report and Fix Any Errors

Before you can improve your credit score, you must be fully informed on your credit status. We recommend requesting a free credit report from each of the three major credit bureaus: TransUnion, Experian and Equifax. Check your report for any errors that could be negatively affecting your credit score. If you find one or more issues, you’ll have to dispute each issue separately, but resolving them will help bring up your credit score.

Not sure how credit scores are calculated? Here’s a brief explanation. Lenders most commonly use VantageScore 3.0 and FICO® Score 8 as their scoring models. Scores are calculated between 300-850. If you score between 300-629, your credit is considered poor. If you score between 630-689, your credit is fair, and if you score between 690-719, your credit is good. A credit score of 720 or higher is considered excellent.

Make Payments on Time

One of the most important things you can do to improve your credit score is to make payments on time. About 35% of your credit score is determined by your payment history, so paying on time is crucial. If you have trouble remembering to make payments, try signing up for automatic payments or setting reminders in your calendar to ensure you’re always on time.

Stay Below Your Credit Limit

Another factor that majorly impacts your credit score is the amount of credit you’re using. In fact, up to 30% of your credit score is determined by your credit utilization. Aim to use as little of your allowed credit as you can. The lower, the better; try to stay below 30% of your total credit allowance if possible.

Be Patient

At the end of the day, you may have to wait for your credit to improve over time. This may be the toughest step because we know you’re eager to improve your credit as quickly as possible. However, once you’ve acted on the steps above — resolving credit report issues, paying your bills on time and reducing your credit utilization — if your credit score is still low, you’ll have to be patient as time takes care of the rest.

Once your score has improved and you’re ready to buy or lease, you can get pre-approved for financing online and shop our online inventory. After that, visit us in person, and our team will be happy to help you finalize your purchase. We’re here to assist you along every step of your car-buying journey, and we can’t wait to help you make it to the finish line!

If you'd like to learn more about rebuilding your credit score, contact us today or stop by our dealership at 100 Town Center Parkway, Lafayette, LA, 70503 . We welcome customers from New Iberia, Abbeville, Youngsville and Broussard.