At Approved Loan Store, we work with a wide range of customers every day. For some of them, they have gone through the car buying process before, and this is their second or third car. For others, however, we are helping them purchase their first car. Buying your first car with good credit can be intimidating, but buying your first car with poor credit or no credit can be downright frustrating. Over the next few weeks, we will answer some of our most-asked questions here on the blog, and we encourage our readers to comment below with any other questions you would like us to address!

Question: I want to improve my credit score. What is my credit score based on?

Answer: A credit score is based on a number of factors including length of credit history, payment history, credit utilization (credit used compared to credit available), and variety of credit. To have an optimal credit score, a person needs to show the ability to obtain credit and make payments on time. They need to have a variety of accounts such as credit cards, auto loans, mortgages, or other personal house loans because it shows they can budget and manage several accounts at once.

Improving a credit score takes time, patience, and careful planning, but we have two tips we would like to recommend for improving a credit score. First, pay down your credit cards. This will lower the overall credit utilization and boost the score. Second, add some variety to your accounts such as an auto loan with the Approved Loan Store. We work with clients who have subprime credit every day and help them get an auto loan at terms they can afford. If you make your loan payments and all other payments on time, the credit bureaus will see another positive account, and your credit will improve.

Still have questions about our program? Give us a call toll-free at 877-217-2217, or visit us online at www.ApprovedLoanStore.com. You can also get more car buying and credit tips by liking Approved Loan Store on Facebook, following Approved Loan Store on Twitter, and subscribing to Approved Loan Store on YouTube!

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