Financing your auto loan with Universal Financial Company will provide you the opportunity to improve your credit score. Successfully completing a loan with us, making on time monthly payments will benefit you in obtaining better terms the next time you buy a car. As a consumer, it is important to be informed on what lenders look for in deciding to extend credit. Here are a few things they consider:

  • Credit accounts: How much debt do you currently have?
  • Payment history: How frequently are your payments made on time?
  • Income: How much income do you have to cover your payments?
  • Credit Inquiries: How often and how recently have you have applied for credit?

It is important to review your consumer credit report annually to know what your credit looks like and to find potential mistakes and/or identity theft. To request an annual credit report, visit Under federal law, you can get a FREE copy of your credit report every 12 months from each credit reporting company listed below:

  • TransUnion
  • Equifax
  • Experian

Five factors that affect your credit score

These are the different factors that bureaus use to calculate a credit score:

  • Payment history
  • Credit accounts
  • Length of credit history
  • Credit usage
  • Credit applications
FICO Scores

Image via My Fico

The chart above illustrates factors that will affect your credit score. Income, age, bank balances, marital status and debit and prepaid cards do not affect credit scores. Although, these factors do not affect your credit score, lenders might look for information such as your employment status and income when making their final decisions.

Tips to help you improve your credit score

Repairing bad credit or building new credit can take time, but managing it responsibly can improve it over time. Here are eight tips to improve your credit score:

  • Make timely payments
  • Keep your balances below credit limit
  • Do not max out your credit cards
  • Finish your loan terms
  • Do not transfer balances
  • Do not close unused accounts
  • Only apply and open new accounts when needed
  • Check your credit report annually