Why You Need Good Credit Essay

Why You Need Good Credit Essay

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If you have bad credit or have had credit issues in the past, you might find it difficult to figure out exactly how to rebuild your credit or get a better credit score. In most cases, you need credit to get a better credit rating. However, if you have bad credit, it could be difficult to get credit, and you end up with the challenging cycle of being unable to get the credit you need to fix your credit. This type of situation can feel hopeless, but you do have options. If you’re trying to figure out how to fix bad credit or how to raise your credit score, here are a few things you need to know.

Why You Need Good Credit?

Before you begin fixing your credit, it’s important to understand why you need good credit in the first place. A bad credit score is typically somewhere around 600 and lower, but can also be as high as 649, which is considered “poor.” Fair or average credit is usually 650 to 699, so you want to get your score at least in the “good” range, which begins at 700.

Most people think having bad credit just means you can’t get approved for a credit card. However, bad credit can end up costing you a lot more than just a credit card over the years. Some of the reasons you should fix your credit include job opportunities and lower interest rates. For instance, there are some employment opportunities that you could miss simply because you have bad credit. In positions that require money management, bad credit could indicate that you aren’t able to properly manage funds.

When it comes to interest rates, bad credit can cost you thousands of dollars per year in interest payments.

Although you may still qualify for credit cards and other types of loans, they could cost you significantly more than if you fix your credit and ha...

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...our credit score include the following:

· Mix up your credit file and include credit cards, loans, and mortgages.

· Make your payments on time every month.

· Keep down the number of credit inquiries.

· Keep balances below 30% of available credit limit.

· Don’t close old accounts.

In addition to these steps, it could be helpful to get a secured credit card so you can establish a positive payment history. As long as you make your payments on time and pay your balances in full each month, a secured credit card can become an important tool in fixing your credit.

In order to raise your credit score and fix bad credit, you will need to set up a plan and stick to it. You won’t get better credit instantly, but over time your credit score will get better and you’ll be on your way to good credit.

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