Planning to Buy a Car? Try These Credit Score Hacks First

Planning to buy a car? Before you start comparing models and calculating monthly payments, take a moment to look at your credit score. Why? Because your credit score can directly impact your auto loan approval, interest rate, and even your insurance premium.

Your chances of getting a better bargain increase with your score. And the good news? With a few simple credit hacks, you can give your score a boost—sometimes in just a few weeks. In this guide, we’ll walk you through key strategies that can help you save money and improve your chances of getting approved. Learn more credit score hacks.

And if you want to track your progress, PFScores offers tools to monitor your credit health and financial growth in real time.

1. Know Where You Stand

Before doing anything else, check your current credit score and pull your credit report from all three major bureaus (Experian, TransUnion, and Equifax). You can do this for free at AnnualCreditReport.com or use a monitoring service like PFScores to view your financial health all in one place.

Look for:

• Errors or incorrect account details

• Old negative marks that should’ve been removed

• High balances or missed payments

Fixing even one error can give your credit score a small but valuable lift before applying for a loan.

2. Pay Down Credit Card Balances

One of the fastest ways to boost your credit score is by lowering your credit utilization ratio—the amount of credit you’re using compared to your total limit. Try to keep your usage under 30%, and under 10% if possible.

Here’s how:

• Make extra payments before your statement closes

• Divide the amount you pay each month into two smaller amounts.

• Pay down the cards with the biggest balances first.

A lower utilization ratio shows lenders you’re managing credit well, which can improve your score quickly.

3. Don’t Apply for New Credit Cards

Applying for a new credit card right before an auto loan can hurt your chances. Every application causes a hard inquiry on your credit report, which may lower your score by a few points.

Worse, multiple new applications in a short time frame make lenders nervous—it looks like you’re taking on too much debt. Stick with your current accounts and avoid opening new credit lines until after your car purchase.

4. Bring All Payments Current

If you have any overdue accounts, catch them up before applying for your auto loan. The most significant component of your credit score is your payment history. Just one 30-day late payment can damage your score significantly.

Here’s what you can do:

• Call creditors to set up a payment plan

• Update all accounts, particularly credit cards and loans.

• Set up autopay to prevent future late payments

With tools like PFScores, you can monitor payment activity and get reminders before bills are due.

5. Become an Authorized User

Ask a dependable family member to enroll you as an authorized user on their credit card account if you have a poor credit score or little credit history. If the card has a good payment history and a low balance, it can help boost your score without you needing to use the card yourself.

Make sure:

• The account is in good standing

• The issuer notifies the credit bureaus of permitted user activity.

This tactic works especially well for younger buyers or those recovering from past credit issues.

6. Avoid Closing Old Credit Accounts

It might seem like a good idea to close unused credit cards, but that can actually hurt your score. About 15% of your score is influenced by your average credit age, which is influenced by older accounts.

Unless the account has an annual fee or other issues, keep it open and use it occasionally to maintain a positive payment history. Closing old cards reduces your available credit and can raise your utilization rate, both of which may lower your score.

7. Consider a Credit Builder Loan

A credit builder loan can be helpful if you have a thin credit file or a score that is below average. These small installment loans are designed to help improve your credit profile by building positive payment history.

How it works:

• You “borrow” a small amount that’s held in a secured account

• You make monthly payments over time

• You receive the money plus the credit benefit when the loan is repaid.

PFScores can help you track the impact of these loans on your credit growth, especially when combined with other responsible habits.

Conclusion

Buying a car is more than just picking the right model—it’s about securing the best financing possible. And that starts with your credit score. By applying these credit score hacks early, you can strengthen your profile, reduce your interest rate, and improve your loan terms. check your Personal Financial Scores.

Whether you have great credit or you’re still rebuilding, using smart strategies now will pay off later.