Your credit record is like a sentinel. It watches over you and protects you from possible identity theft and consumer fraud. It also serves as the gateway for your long-term goals like buying a house, getting a loan, and others. To pass by that gateway, you need to have great credit scores.
Credit bureaus ensure that they do not commit mistakes in recording your finances and assigning you your credit scores. These scores will indicate your creditworthiness. But like many others, these professionals are not exempted from mistakes.
Hence, if you are someone who needs credit repair due to possible errors in your finances, you can run to professionals for help. Regardless, you have the right to ask regarding your file. If you notice inaccurate information from your file, you also have the right to dispute it.
What Makes Credit Repair a Worthy Resort?
Since your right to accuracy is constituted under the Fair Credit Reporting Act, you are capable of repairing your own credits. You may access the latest copies of your credit reports from the consumer reporting agency in the United States. You have so many resources like books and the internet that can help you fix your credit report.
So, why would you seek help from credit repair professionals?
The process could be overwhelming. Accordingly, it takes three to six months or more for you to rebuild your bad credit score. Other than that, disputing errors can also be a frustrating process for many consumers.
Further, some consumers also struggle to access their credit reports. The Consumer Report found out that one in 10 consumers said that accessing their credit reports is “difficult” or “very difficult”. This follows their survey with around 6,000 individuals. With this, the help of credit repair companies would fix issues with your credit reports.
Validates Your Credit Records
Credit repair companies have professionals that can check on the credit report. They can validate the potential errors included in your report. With this, they will coordinate with the creditors to channel your concern and fix them.
The 2021 survey of Consumer Report also showed that 29% found errors in their personal information and 11% in their financial accounts. Duplicate and inaccurate accounts are some examples of credit report errors.
These errors might justify professionals as humans capable of committing mistakes. But this does not reduce the impact of delaying you or prohibiting you to take that dream house for instance. Hence, this should be furnished as soon as possible.
Restores Your Financial Health
Getting the erroneous items in your credit report does not end there. Some credit repair companies offer tools that you can use in monitoring your credit report. With this, they help in restoring your financial status by keeping you informed to rebuild credit.
Further, you have to ask assistance from credit repair companies if you have seen inaccurate information in your credit report. Their professionals will help you bring back your financial health following a process. However, getting away from accurate information just to get away from your responsibilities does not lead you to something good.
Saves You in the Long Run
Asking assistance from a third party would indeed cost you. But not saving your credit score as soon as possible could affect you in the long run. This might end you with additional expenses and ban you from obtaining that car you wanted or applying for a loan.
Accordingly, credit repair companies charge you $19 to $149 per month, depending on the service needed. Some offer packages. For instance, for $79 per month, a team of case advisors will assist you. Education and management tools are also a few of what you can benefit from.
You may also check the reviews or ratings of a certain credit repair company to validate its help in your finances. With this, you will know what you are entering before you fall into the hole of nothingness. Some also offer guarantees that you must also consider.
One of the requirements for taking loans and buying properties in the United States is to have a good credit score. But how good is acceptable?
How Far Can a Good Credit Score Take You?
Thresholds for what is a good credit score vary on the type of loan you are applying for. Some lenders do not disclose what their credit score thresholds are. However, as cited in Forbes, Fair Isaac Corporation (FICO), a credit scoring model follows a scale of 300 to 850. From the said scale, 670 and 739 is a “good” credit score accordingly.
Credit scores are vital, especially if you purchase cards or a house perhaps. This would become the basis for a financing company to consider whether or not to approve your loan.
According to credit.org, a 300 to 549 credit score is bad. This score will likely be declined for a loan. Also, a 550 to 619 credit score is a poor one. One best thing to improve this is to pay your debts on time.
Further, a 620 to 679 credit score is a fair one but this does vary. The 680 to 739 is a good credit score. Lastly. 740 to 850 is an excellent credit score. Over this, companies still need to check consumers’ backgrounds.
You can improve your bad credit score if you pay bills and balances on time. In this way, you can free up your available credit. Reviewing your credit reports from time to time about errors and outdated information would also help. Your credit score has a lifetime value that will deter you from getting that long-term goal you have.
Conclusion
Maintaining a good credit score is highly dependent on you as the cardholder. You have to regularly pay acquired fees on time so you will retain your good credit score. Credit card debts in the United States in 2020 dropped as people stayed at home.
Data from the U.S. Federal Reserve cited in investopedia.com show that the total credit card debt was $974.6 billion in 2020. This is compared to $1.092 trillion in the previous year. However, in 2021, the total debt increased to $998.4 billion in July.
Credit cards allow people to purchase something that is payable for a period. However, you must use these cards responsibly to avoid problems in the future. If you pay consistently, you can boost your credit card rating. This will lead you to huge opportunities. However, if these get out of your control, it can become a big problem.
However, there are credit repair companies that can help you resolve your problems. This includes the inaccuracy of your financial record.
