Lenders use your credit report as a quick risk snapshot. Improving it is less about chasing a score and more about presenting low‑risk behaviour consistently. That means clean repayment history, sensible use of revolving credit and controlling how often you apply for new credit. Changes compound over months, so start early if you can.
Obtain and review your report
You can request your report from major credit reporting bodies at no cost. Check personal details, addresses and accounts; mismatches can look like risk. Dispute errors in writing and provide documentation. Corrections can take weeks, so begin well before you apply for a car loan.
Payment history matters most
A 0‑day late payment won’t harm you, but 30‑, 60‑ or 90‑day lates do. Set up direct debits for utilities and credit cards. If you fall behind, repay and contact the provider; many will remove a black mark after a good‑faith arrangement, particularly for first‑time issues.
Lower utilisation
High balances relative to limits signal strain. Pay down credit card balances and consider lowering excessive limits. Lenders assess capacity with actual limits, not just balances, so unused large limits can still reduce your borrowing power.
Reduce enquiries
Spikes in applications can read as risk. Space out credit applications and avoid shotgun shopping. When comparing car loans, use comparison rate information and pre‑qualifications that don’t trigger a hard enquiry where possible.
Stability signals
Longer employment tenure, consistent address history and orderly banking conduct support approval odds. Keep your transaction account healthy; frequent overdrafts or dishonours can concern lenders even if your credit report is clean.
Timing your application
If you have recent adverse events, allow time for recovery before applying. For minor late payments, three to six months of clean history helps; for defaults, you may need more time and specialist advice.
Bottom line
Improving credit is about boring consistency. Clean up mistakes, automate repayments, dial down limits and avoid unnecessary enquiries. Do this for a few months, and you’ll likely qualify for a better rate and a smoother approval.