There is nothing more exciting than driving a new or pre-owned Lexus model away from the Lexus of Valencia showroom. But before doing so, it’s essential to secure a Lexus financing plan that best works for your individual needs. One tip that our Lexus finance team always gives to prospective buyers is that your credit score is often the key to getting the most favorable rates. Here are some tips to raise your credit score before you sign your Lexus financing plan.
Make Sure to Always Pay on Time
The most influential factor in your credit score is your payment history, which makes up roughly 35 percent of your total rating. Even a single missed payment can have a large negative impact. To help never miss a due date, we recommend setting up automatic payments for the minimum amount due.
Don’t Close Old Credit Accounts
The length of your credit history contributes to your overall credit score. You might be tempted to close an unused credit card to clean up your finances, but this can actually hurt your rating. Closing old accounts shortens your average credit age and reduces your total available credit limit, which can inadvertently spike your utilization ratio. Keeping these accounts open and making occasional small purchases on them is a smart move.
Be Careful With New Applications
Every time you apply for a new credit card or loan, a hard inquiry is placed on your report. This can temporarily lower your score. When you are planning to buy a vehicle, it can help to avoid opening other lines of credit to keep your score stable.
Apply for Lexus Financing in Valencia, CA
Raising your credit score can lower your financing rate and unlock lease offers. We invite you to visit our finance center at Lexus of Valencia to begin your auto loan. Our team is happy to help you obtain the best loan for your individual situation, so join us for a December to remember!
