Getting that golden FICO credit score of 750 to 850 is difficult at any age, but for consumers that start later in life, it can seem impossible or even pointless to try. The truth is that working for a better credit score is beneficial, no matter how old or young you are.

Many consumers mistakenly believe that after a certain age, they really don’t need to worry about their credit. They have paid off their mortgage and car loan, and they either don’t have credit cards or closed their credit card accounts long ago. What reason would they need to take out a loan or need access to credit anyways?

Unfortunately, this kind of thinking usually leads to disastrous inaction. There are many reasons why a consumer could need a loan or available credit, and to get a loan, consumers need a good credit history and by extension, a good credit score. A medical emergency, sickness in the family, temporary job loss, or another unforeseen emergency can happen to anyone. Even if none of these circumstances occur, most people want to travel in their retirement or rent out a condo in a warmer climate. Travel credit cards will require a good or excellent credit score, and renting a condo will usually require a credit check.

There are a few ways that consumers at any age can ensure a solid credit score. First, do not close old credit card accounts. As long as these accounts are open and active, they will report to Equifax, Experian, and TransUnion. Closing these accounts shortens a credit history and lowers the amount of available credit. This raises the overall credit utilization and lowers the FICO score. Second, pay all loans and lines of credit on time and keep the balances low. Payment history makes up a huge part of a credit score, so consumers who pay on time will benefit while consumers who miss payments will end up with a lower score. Finally, consumers who don’t have many accounts on their credit report can boost their score by opening a new line of credit, like an auto loan, and making their payments on time. This action will also diversify the type of credit on the report.

Obtaining an auto loan without a credit history or troubled credit history is tough, but it is achievable. Contact a sales person at Bayside Chrysler Jeep Dodge and find a time to come in so we can work with you to find the proper loan. We’ll get you driving away in the new or pre-owned vehicle best suited for your lifestyle. Be sure to like us on Facebook and to follow us on Twitter to see our monthly specials.

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