The High Cost Of Bad Credit & How To Fix It
When it comes to borrowing money whether in a loan or by using a credit card, the higher your credit score, the more choices you will have of the lowest interest rates. This means you will pay less to borrow that money compared to someone with even a slightly lower credit score. And that is how having a higher credit score can save you money.
Why Your Credit Score Is So Important
- Are you being turned down for home loans, refinancing, automobiles, department store cards, or even gas cards?
- Are you paying a higher interest rate than you should, or has your credit limit been lowered?
- Are you tired and embarrassed by the constant calls from creditors and collection agencies harassing you?
- Have you faced repossession or foreclosure?
In today’s economic climate, a growing number of Americans suffer from negative ratings in their credit file including delinquent payments, judgments, collections, foreclosures, and bankruptcies. Not only do these items prevent you from obtaining new credit when you need it most, you may also face additional penalties such as increased interest rates on credit cards, higher late fees and over-limit fees and lowered credit limits.
Most people with bad credit are not irresponsible, nor are they unwilling to pay their obligations. In fact, if you’re like most people, you probably maintained a good credit profile until an unforeseen circumstance like a layoff, a medical problem, or a divorce prevented you from making a few payments in a timely manner.
The truth is that most people struggle long and hard to meet their obligations but the money coming in just doesn’t meet the bills going out. If the circumstances become serious enough, many people have been forced into foreclosure or to file for bankruptcy protection.
More than ever before, our increasingly tight credit market demands a high credit score. Why?
Over three-quarters of all lenders use credit scores when approving loans or credit. The importance of your credit score doesn’t end there. It’s also used to determine your interest rate, the amount of your down payment and the variety of mortgage types available to you if you’re buying a house, your ability to get a car loan, the premium on your auto or homeowner’s insurance. For example, some insurers are using low credit scores as indicators to identify individuals they believe are more likely to make claims against their insurance policies. These insurance companies maintain that there is a correlation between poor credit and filing multiple insurance claims.
Recent government surveys indicate that less than a third of all Americans have reviewed their credit report within the past year. Many more people do not know their current credit score even though financial experts constantly advise consumers to review their credit reports for accuracy on a regular basis.
Recent surveys reveal over 80% of all consumer credit reports contain serious errors or mistakes of some kind. This prevents millions of Americans from being able to purchase a home or an automobile or finance other goods or services they need.
Very likely you are one of those people with inaccurate information. Additionally, many people are paying astronomical interest rates, or have been denied financing unnecessarily due to their low credit scores.
Because your financial health revolves around your credit score, it is important the information your credit report contains be as accurate and up-to-date as possible. Millions of inaccurate items have been removed from consumers’ credit reports since the Fair Credit Reporting Act was passed in 1971. Why shouldn’t YOU join them and start saving money right now?
How Does Credit Repair Services Work?We’ve partnered with the leading company specializing in credit restoration. Our processing center utilizes the latest technology ensuring fast, accurate service for our customers. Our team of experienced professionals is highly knowledgeable and holds the Credit Reporting Agencies accountable to utilize the newest legislation regarding the Federal Trade Commission guidelines and the Fair Credit Reporting Act.
Your dollar is more important to you than ever, and we are constantly looking for ways to maximize and improve the value of the services we provide. With this in mind, our credit restoration service provides the industry’s most comprehensive program to consumers who have been turned down for a mortgage, car loan, credit card or any type of credit due to credit problems. Our credit analysts will research out-dated, inaccurate and unverifiable entries on your credit reports that negatively affect your credit score such as late payments, bankruptcies, judgments, collections, tax liens and much more.
In addition to the credit restoration process, our extensive library of credit education and budgeting information will help you to maximize your credit score in three additional important ways – by showing you how to read and interpret your credit report, by showing you how your credit score is calculated, and by helping you understand and improve your personal finances.
Working with us will enable you to:
- Understand the components of a credit score and how it’s calculated
- Understand how to read and interpret your credit file, and understand the difference in ratings between mortgage, installment and credit accounts
- Understand how certain bill paying habits may be adversely affecting your credit score
- Understand the impact of the amount of credit you are currently using
- Provide useful tools for establishing and maintaining a budget
Follow these simple steps to get the good credit you deserve: