Credit Repair is Important
Credit Repair is Important your credit score is what banks and other establishments use to check whether they should approve your purchase, loan or job application. Naturally, this could mean the difference between an approval or a denial and why your credit repair is important should you be denied.
Credit repair is important and necessary when your credit score is 600 or below. To give you an idea how this is calculated, everyone starts out with a good score but the moment you are late on a payment or a mortgage, this has an affect on your credit score.
Does this always mean you will not be able to get a loan? In some cases no but you will probably get rates which are much higher compared to someone who has a good credit score.
The only way to fix that is by paying off old debts and making sure that it does not happen again.
If you think this can be done overnight, think again because the amount of money you owe might be too big and most people who have had this problem are only able to complete paying it after several months or even years.
Should bankruptcy even be an option? Never because your record will be kept on file for 10 years and you can’t escape it.
You can’t repair your credit similar to your car unless you know what is wrong. To do that, you need to get a copy of your credit report by obtaining this from one of the three credit agencies namely Equifax, Experian, and Trans Union.
When the credit report is in your hands, review what is on it. If you know for a fact that a certain issue has already been resolved, send a letter to that credit agency together with the supporting documents so your credit report can be corrected.
For those who have outstanding balance, the case is different because you need to pay for it before you can get a settlement letter which should also be given to the credit agency for filing.
Until that happens, you have to find some way to pay for it. You can get better terms by getting a debt consolidation package which is designed to buy you some time at lower interest rates.
Surprisingly, credit repair may be as simple as borrowing money since your credit score may not improve unless you apply for a loan. You don’t have to borrow a lot since a small amount like $500 is enough to get the ball rolling. Again, just make sure this is paid in the agreed upon time and in full.
After reading this, you already have a clear picture as to why credit repair is needed. Could it have been avoided? The answer is yes but it is too late to think about that when the important thing to do is focus on the situation.
Credit repair may be simple or complex and if you can’t do it alone don’t be afraid to ask help from a credit counselor. It won’t be long when you will once again be in good standing and you will once again be given a line of credit.