Knowing the best practices of credit restoration redeems you from having a bad credit history. Otherwise, having a bad credit score can lead to a lot of misfortunes and disadvantages in your life. Not only you will find it hard to apply for a credit card and loans, but it also could ultimately lead to being jobless and homeless. Recently, companies from most industries have been taking a look at job applicants’ credit reports to see signs of financial difficulty that could indicate risks of fraud. In simple words, the lower the credit score you have, the less likely you will get a job. To get a deeper understanding of why you should consider credit restoration, take a look at the reasons why you should start fixing your credit score.
High Credit Score is Equal to Low-Interest Rates
To get lower interest rates from your loans and credit purchases, you should have a high credit score. If you have a low credit score now, it highly suggested for you to consider credit restoration. An interest rate is an amount proportional to the value that is lent to you that you have to pay in a due period. For example, the car that you loaned originally amounts to $500 a month, the interest for this car is 5 percent. That means your payment every month is $525. The $25 is your interest rate. Having a high credit score could lower that interest rate and can save you money.
Save Money on Mortgage
Having your own house and to stop living in your parent’s basement has always been our dream. Having a bad credit score will stop us from fulfilling this dream. Understandably, most banks will not lend you a mortgage if they see you haven’t been a responsible payer with your debts and bill payments. While some banks might lend you a house, they will certainly give you a very high-interest rate that will cost you a lot of money.
As mentioned, job applications can be very tough if you have a low credit score. Or if you already have a job, getting a promotion will be less and less likely the lower credit score you have. These employers take a look at your credit score to see whether you have been responsible. Late payments indicate that you are not organized or do not care much about agreements between yourself and a company.
Earn a Higher Credit Limit
Your creditors will likely reward you with a higher credit limit if they see that you have been a good payer. Having a high credit limit means you can purchase more. Be careful though as maxing out your credit utilization could hurt your credit score. Credit utilization is the ratio between your credit card balances and your credit limit. For example, you have a credit limit of $20,000 and you owe $10,000, then your credit utilization is 50 percent. If you have maxed out your credit limit, then your credit utilization is 100 percent. Remember that the lower credit utilization you have, the better your credit score will be.
Ask For Help
Credit restoration companies are not only there to help you clean your credit record. They are also consultants who can help you better understand how credit works. They can help you evaluate your credit report and formulate tactics to maintain your good credit score. Blue Water Credit is a company that can help you. With vast knowledge about credit, you can count on them to fix and maintain your credit score. Visit https://bluewatercredit.com/ to learn more.