3 Sure-Fire Ways to Improve Your Credit Score

One of the secrets to cheap car leasing is to have a credit score of at least 640. If your FICO score hovers below 640, then here are 3 sure-fire ways to improve your FICO score:

1. Depending on the severity of your credit score, you should give it some time before you lease or buy a car. Of course, this will also depend on your needs. If you need a new car fast, then there is no problem with paying a little extra for the interest rate, but why not save yourself some money in the first place?

Think long term: 6 to 8 months is enough to fix your credit score. Those with a poor or bad FICO score should wait at least a year. There is no magic trick that will instantly improve your credit rating, but if you plan ahead and give yourself some time to somehow fix your credit rating, then you earn a chance to pay less on your car loan or car lease.

2. After planning ahead, it is now time to bring out your calculator or smart phone and do some number crunching. How much are you earning in a month? How much are your monthly and utility expenses? How much do you spend using your credit card? How many bills are past due? Are you buying stuff that you don't need? Ask yourself these questions so you can determine how much you can actually spend, without pinching on food and other important items.

After doing all this, determine how much debt you owe and make a commitment to pay past due debt ASAP. A single past-due entry on your credit score will severely affect your credit rating. If you have a lot of debt, pay them in small monthly increments until everything is settled. Your mantra should be: pay debt before making any purchases.

3. Do not close out your credit cards--but you should only use the ones with the lowest interest rates. Check your monthly account balances and see which credit card is providing you with the lowest monthly charges. If you close out your credit cards, then your credit history will be affected as well, and this will not create a favorable impression among lenders and car leasing companies.

You will need discipline to improve your credit score. But when done right, you will soon find yourself driving home the car that you have always wanted--without breaking an arm and a leg.