A credit score is one of the most important factors in determining whether a
person can get approved for loans. It's also used to determine insurance rates and even employment. A poor credit score means higher interest rates on loans,
more expensive car insurance premiums, and less chance of getting hired at
certain companies.
It
seems like a lot of people are concerned about their credit
scores these days, especially
with all the talk about how it will affect them when they buy a home or car in
the future. In this blog post, I'll discuss what you need to know if you're
trying to repair your credit score so that you have better odds when applying
for those loan applications!
Having
a low credit score is not only an inconvenience, it can also be costly. A low
credit score can cost you money and time in the form of higher interest rates
on loans and more difficulty securing financing for things like houses or cars.
To
repair your credit, you will need to take some major steps such as making
timely payments on all debts, paying off any outstanding debt that's over 30
days old, paying bills ahead of schedule if possible, settling delinquent
accounts with creditors/collection agencies who are unwilling to work out
payment plans with you.
Understanding Credit Repair
A credit score is a three-digit number that indicates the financial risk you pose
to lenders. The higher your score, the lower your risk and vice versa. Credit
scores are determined by looking at different factors such as how much debt you
owe, whether you have any bankruptcies, delinquencies, foreclosures, or late
payments on your account.
What Credit Repair Companies Do?
Credit Repair Company
help people improve their credit score by scrubbing away bad marks on your
credit report. This can be done in a few different ways:
An
address discrepancy (e.g., the wrong street number) or misspelling of your name
that has been showing up on your reports for years, could be the reason you've
been refused for a loan or have had to pay higher interest rates than
necessary. Credit repair companies will contact creditors and request that they
update incorrect information with county records and provide you with copies of
any changes made so you can review them yourself before making a decision about
filing disputes with the credit bureau
The goal is to get as many accounts removed from your reports as possible because
every account reported negatively impacts your scores.
Scam Credit Repair Companies
One of the most common scams in America
is credit repair companies. These companies make promises that they can remove
negative information from your credit report to help you get a better score and
thus, lower interest rates on mortgage loans, car loans, personal loans, and
more. However, these types of agencies are not regulated by any agency or an organization like the Better Business Bureau (BBB) so there's no way to know if
their claims are true. If you're looking for a reputable company to help with
your credit report issues, then visit www.annualcreditreport.com
The Bottom Line:
Repairing
your credit does not have to cost you anything. You can handle the process
yourself by following the step-by-step instructions on the three major credit
bureaus' websites. If you want help, you can hire a credit repair company to
assist you. They generally charge anywhere from $19 to $149 a month for their
services. But beware of scam credit repair offers, which may leave you in worse
financial shape than before.
Talk to us on (888) 803-7889 today and learn everything you need to know about credit scores and how to improve yours.
Comments
Post a Comment