How Credit Scores Work

What Determines Your Credit Score & How to Improve It


A strong credit score is crucial to securing an auto loan, especially one with a low rate. But what affects your credit score and how can you improve it? Here is some information, courtesy of our financial experts at Phil Moore Buick GMC in Jackson, MS.

Payment History

Have you kept up with your bills, paying them on time and never missing a payment? This is the biggest factor in determining your credit score. If you regularly miss payments, your credit score will suffer, making it more difficult to finance a new or used vehicle.

Current Debts

How much debt have you incurred via your credit cards, school loans, mortgages, and more? It is good for your score to carry some debt, but if you are maxing out cards and never paying more than the minimum payment, you credit score will take a hit.

Length of History

How long you have been using lines of credit will also play a part in determining your score. If you have been paying all your bills but only for a year, you might not have enough of a history to boost your score. Conversely, if you have been keeping up with your credit payments for decades, your score will be strong.

New Credit

When you open new credit accounts or increase your credit limit, your score may temporarily take a hit. But that initial hit is okay if it will help you strengthen your credit.

Type of Credit

You should have a diverse credit portfolio, including credit cards, mortgages, car payments, and retail accounts.

Get Financing Today!

Improving your credit score is simple in theory. Pay off your credit cards regularly, keep your credit utilization low (if you have been approved for $1,000 a month, try to only use $300 and pay it off every month), and pay all your bills on time. You can also take out new loans if you can responsibly pay them off, thus building a stronger credit history, which will help you with future purchases, like a vehicle from Phil Moore Buick GMC in Jackson, MS.

Let Us Help You Decide

Contact Phil Moore Buick GMC in Jackson, MS with any questions you still might have for more information.

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