You may have heard of the terms credit repair, credit score or credit report and know all about what they mean and do or perhaps you are like many people who really have no clue on what your credit score, credit report or what any of this even is. That is the goal of this website, to help educate you on these topics and to help you realize that you can in most cases actually do something about it in order to improve your credit score and thus the interest you would be paying on certain loans or credit.
The truth is that there are indicating factors that help to determine how much a creditor will lend you and the interest they will charge you. But it doesn’t stop here, your rates will vary from other people’s, either for the better or for the worse based on these. Not everyone is offered the same rate of interest on lets say a mortgage or a car loan. As a result, the people charged less may end up paying thousands of dollars less over the course of their credit or loan.
Have you ever tried to receive financing for something such as a car, house and been surprised as to how expensive your interest rate would be? Like many people your credit score may be low and causing some added interest charges that you would rather not see. The truth is, that most people have some kind of flaw or imperfection on their credit report. This can easily be the case because unless you have always paid everything on time and have actually taken out a fair amount of credit in the past you will have something negative against you. These negative points then in turn are suppose to indicate what risk you are for loaning money to.
What is unfortunate is often a low credit rating can not only affect your own financial self esteem but make creditors judge you by it. But it may not really be your fault. Let me explain, you may have paid off your bills on time for years and maintained a great record but an unexpected job loss, medical trouble, or horrifying bill that insurance does not cover etc. As a result these issues take front and center stage and must be paid off and as a result, you may start to slip on credit card bills. One thing leads to the next and you have a bit of financial trouble that further impedes your ability to obtain a decent interest rate on any credit you wish to obtain.
A credit report has information added or subtracted to it by any qualified creditor and credit bureau. There can be many points and from many different companies all contributing to it. This all happens without you being aware of what points are even on it. Since there can be multiple entities using and changing issues on your credit report there can come conflicting information, inaccurate or outdated points, details that should have been removed, even issues that can legally be removed. It is actually quit surprising how many people think that their credit details are all in line and end up being skewed. In most cases your credit report can be improved or repaired as you will. This can end up saving you thousands and thousands of dollars down the road. Read more on the Ethics of Credit Repair.
Unfortunately the term Credit Repair Companies has taken a hit from unscrupulous fraud companies. This in turn has hurt the industry name. But there is a way to help protect your information and money when it comes to dealing with a business that deals with fixing credit. I would recommend looking up their business name with the Better Business Bureau (BBB). See how long they have been operating, not that a new business is necessarily unsafe, but established ones often give peace of mind to their users.
Also read any complaints, see their BBB rating, this usually comes in the form of a letter grade, A+ being the best and F being the worst. Also if a business promised that they can repair your bad credit within days, be very suspicious (But not referring to bad credit loans, these are possible). Repairing your credit can take several months in reality to make a significant difference. Also never be suckered into believing they can only do this for you “now” and not tomorrow. Don’t fall for any pressure tactics or you may very well be falling into a trap. Other ways to lessen the chances of being lured into a scam is to ask to see the companies business license, and contact the licensee office and ensure they are in good standing. You can even contact the State Attorney Generals office (American citizens) and ask about the company. This information is not here to scare you, but just inform you.
Here are some Credit Tips that may help you in better understanding how credit and repairing credit work. Your credit report can be changed. The Fair Credit Reporting Act not only states but necessitates removal of any item that is not 100% accurate or that cannot be verified in an timely manner. The Fair Credit Reporting Act was actually created by congress for protecting consumers from credit bureaus. Even bankruptcies can also be removed if even slightly inaccurate, obsolete or cannot be confirmed. A bankruptcy can also be removed regardless after 10 years, but isn’t necessarily done so automatically by a credit bureau.
Also be aware that a credit bureaus is not a government authority, they have no legal authority, they are private companies creating a profit by selling credit information on you to creditors. Also be aware that Simply paying a past overdue debt will not remove it from your credit report. While this is a good move, there will still be a record that at one point in time you where failing to pay back what you owed. This however can be fixed and removed. For more information on these issues see the left hand side of this website and click on what interests you.
When it comes time to do your taxes don’t overlook Registered Tax Refund Agents. There are often little issue with your taxes where you could have had more money returned. Not knowing up to date tax laws can end up costing you money.