Get Better Financing Terms On Your Equipment

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Get Better Financing Terms On Your Equipment

• Most of us have credit scores, but how many of us
  know what they are or what they mean? Credit
  scores are created by a company like Whatcom
  Credit Restoration to help lenders determine your
  level of risk as a borrower. They take into
  account your past payment history, the number of
  accounts you have, and the percentage of the debt
  you have compared to your income, among other
  things. A higher credit score means youre more
  likely to pay back loans on time, which
  translates into better financing terms when you
  invest in equipment, vehicles, or real estate
  that require some kind of financing.

3 Reasons To Improve Your Credit Score
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Low credit scores impact more than just your
ability to get a loan. They also affect whether
you can rent an apartment or lease a car. Low
credit scores can even make life harder for
spouses who have good credit and have to sign for
loans as part of a joint application. If you need
to improve your credit score before applying for
a loan or other type of financing, Here are three
reasons why its worth taking steps now Improve
your borrowing power- The more money you have
available to borrow, the better deal you can
negotiate for all of your loans. Lock in
low-interest rates- With an improved credit score
comes lower interest rateswhich can save you
thousands of dollars in interest payments over
time. For example, reducing a rate from 8 to 6
is like getting an immediate 15 pay raise.
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What You Need To Know About Credit Scores

• You probably have an idea of what a good credit
  score is anything above 700 or so. But have you
  ever wondered what a bad credit score is? It
  depends on who you ask, but anything lower than
  600 (or sometimes even 500) could be considered
  poor in some circles. Whats more interesting is
  that most people dont know where their credit
  stands at any given time because they never
  bother to check. This can lead to missed
  opportunities when it comes to getting approved
  for things like loans and lines of credit. If you
  havent checked your credit recently, consider
  doing so immediately.

How To Improve Your Score Fast
Your credit score is important. Lenders use it to
determine whether or not youre likely to pay
back what you borrow. Thats why they often
screen out potential borrowers with low scores.
Whether or not you plan to apply for a loan
anytime soon, monitoring your score is a good
idea. While there are various reasons for
fluctuations in scores, following certain rules
of thumb can help you avoid falling into bad
credit territory Pay all bills on timeincluding
phone bills, utilities, and student loans.
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A Summary Of What Makes Up A Credit Score

• Avoid using too much of your available credit
  keep accounts with very high balances open only
  if necessary. Dont open new accounts unless
  necessary if you do, make sure payments come out
  right away to keep negative information from
  appearing on your report too long.
• Watch what kinds of credit you havestudent
  loans, medical bills, and other forms of
  revolving debt tend to look bad in lenders eyes
  because they suggest that you cant manage money
  well.
• Try not having a car paymentor anything else
  that requires a fixed monthly payment over
  several years. Try to keep balances on your
  credit cards at less than 10 of their total
  credit limits15 is even better. This can
  indicate you are living within your means and
  ability to pay back what you borrow.

A credit score is based on three major
components payment history (35), the amount
owed (30), and length of credit history (15).
Your credit score is calculated by a mathematical
formula that combines these three components. The
higher your score, the more likely you are to be
offered a lower interest rate from lenders such
as banks or credit unions. If you have a high
credit score, lenders will see you as a lower
risk than if you had a low score. When lenders
deem you a lower risk they feel more comfortable
loaning you money because they know its less
likely theyll never get paid back.
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Debt-To-Income Ratio And Why It Is Important

• In addition to helping with your finances, having
  good credit can help improve your odds of getting
  approved for loans for larger purchases like cars
  and homes. It can also help when applying for
  jobs that require background checks or for
  apartments in some cases. So what does it take to
  achieve a high credit score?

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Late Payments And How They Affect Your Credit
Score

• The Debt-to-Income ratio measures a potential
  borrowers debt payments about their income. The
  higher a persons DTI, which is calculated by
  dividing a borrowers monthly debt payments by
  their gross monthly income, typically ranges from
  36-50. Lenders use this number to determine
  whether or not they can afford that extra loan
  payment every month.

Did you know that if youre late on even one
credit card payment or car loan payment, it could
lower your credit score? Delinquent payments
remain on a persons credit report for up to
seven years. If they are paid late more than once
in 12 months, they will be flagged as delinquent
by all three of the major credit bureaus
TransUnion, Equifax, and Experian.
Neglecting To Pay Bills And Why It Is Bad For
Your Credit Score
If you think that if you ignore a bill it will go
away then think again. Ignoring bills means that
you havent taken responsibility for paying them.
The worst thing about ignoring bills is that
creditors have to make an effort to recover money
from you which can harm your credit score. If you
are planning to buy a house or a car in the
future then bad credit history can spoil all your
plans. So, it is advisable to pay bills on time
even if they seem overwhelming.
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The Most Important Factors That Determine The
Payment Terms On An Application

• The specific factors that affect a lenders
  decision of what to do with an application for a
  loan will vary from one lender to another.
  However, some typical factors are known to be
  important. First off, a good credit score
  (usually over 700) may get you approved for
  whatever you need. Of course, it also depends on
  your cash flow which is probably more important
  than your credit score but not always considered
  as such by lenders.

Understanding The Different Types Of Personal
Loan Products Available
Knowing The Type Of Loan That Will Work Best For
You Is Important. There Are So Many Types Of
Personal Loans Available Today That One Might Get
Confused With All The Options. Its Also
Important To Understand What You Are Lending For
And How Much You Can Afford To Pay Back In Terms
Of Interest And Monthly Payments.
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Contact Us

• Address - 3409 Chandler Pkwy Bellingham, WA 98226
• Phone - [phone]
• Email - info_at_whatcomcreditrestoration.com
• Website - https//whatcomcreditrestoration.com/
• Blog - https//whatcomcreditrestoration.com/get-be
  tter-financing-terms-on-your-equipment/