Personal Finance

Last year I had a 535 credit score, today I'm at 667 and just got approved for my dream car

Joey Frenette

Published: February 21, 2025 3:34 pm

Building up a good credit score is something that doesn’t need to take a whole lot of effort. Undoubtedly, given the benefits of having exceptional credit (larger loans at more favorable rates, the lack of deposits on annual cellular bills, or being eligible to rent a big apartment in the big city) and the relatively low barriers to entry into the high-credit-score club, it’s worth the while to pursue measures to level up one’s credit score.

Indeed, you don’t need a perfect score or anything close to it to get the full benefits. By making simple things like paying off monthly credit card bills a habit, one’s credit score could stand to gain by leaps and bounds over time. And the best part is one doesn’t even need to have a massive nest egg to have a respectable credit score.

In this piece, we’ll check in on the case of a Reddit user who’s improved their credit score by more than 130 and is enthused to gain approval for a “dream car.”

Gaining an approval for a loan doesn’t mean you should take it.

Undoubtedly, just because you can borrow more money doesn’t mean you should. And if one does choose to borrow a significant chunk of change for a nice-to-have like a “dream” vehicle (something I’d advise against, given a car is a depreciating asset and not an investment), I’d advise staying on top of those monthly payments to ensure one’s credit score isn’t in a spot to deteriorate again. Indeed, having a large outstanding debt balance may have already had a negative impact on one’s credit. 

While the small victories (such as a nice gain in one’s personal credit) are worth celebrating, it’s vital not to get too far ahead of oneself with the spending. Let’s check out a few ways that the individual can stay on top financially while continuing to enhance their credit score.

As always, the following tips are my personal opinion. Given the personal nature of personal finance topics, someone in a similar situation should consult a financial pro for pointers on how to move forward.

Ensure all bills are paid on time.

First, the key to keeping one’s credit score in good standing is to ensure the bills are paid on time. Indeed, automating bill payments (think rent or mortgage, utilities, credit card debts, and car loan debt) can make it easy to stay on top of one’s monthly expenses.

If a car loan impedes one’s ability to pay off all debts in any given month without having to cut significantly into one’s lifestyle, perhaps one should rethink their car loan if they haven’t yet signed the dotted line. Remember, just because a credit score opens new doors (the ability to take on new loans) doesn’t mean you should walk into them.

If possible, save up enough to eliminate the “dream car” debt.

If one is keen on borrowing money to finance such a splurge, perhaps paying down the outstanding debt with lump sums every once in a while could be a smart move.

Undoubtedly, debt elimination can take time, but if one is able to shore up enough extra cash at the end of the month, it should be used to further chip away at debts to (hopefully) eliminate them sooner rather than later.

Perhaps consider selling the vehicle after some time.

Finally, if one’s already stuck with a loan on a car, perhaps selling one’s vehicle could make sense, especially if the “dream car” loses its luster after a few months. Indeed, the hedonic treadmill will, in due time, cause just about everyone to get used to the purchase they made.

Your dream car could quickly become “just another car” that’s perhaps too expensive to maintain in a few months down the road. If that’s the case and you can downgrade your vehicle, perhaps selling it and investing the proceeds could help jolt your nest egg while allowing you greater liquidity to keep paying those monthly bills as they come due to keep your credit score in solid shape.