Best Credit Repair Services

Best Credit Repair

Best Credit Repair

You may be someone who is interested in finding a payday loan for your current cash needs, but did you know that there is something known as credit repair? It is a very interesting concept in finance, and it can help you save a lot of money and time if used correctly.

Having bad credit can create a lot of challenges for you. Banks use credit scores to lend money to people. They normally classify all lenders as people with good credit scores and people with bad credit scores.

If you are in the first group, then congratulations! You will get loans from banks and conventional financial institutions without much hassle. If, however, you are in the second group, then you might not even get entertained by banks and traditional sources of capital.

Financial institutions look upon bad credit lenders as someone who has a high probability of defaulting on a loan. Hence, there will be a reluctance to lend money.

The financial institution might compensate the “risk” that they are taking with a bad credit borrower by charging higher interest rates. Loans can be short-term (like a payday loan) or long-term (like a mortgage). If the loan is long-term, then a higher interest rate can result in hundreds of thousands of dollars of extra expenses through the life of the loan.

After all, you will be paying higher installments every month, year after year, and all of that extra cost adds up.

Why would someone have bad credit?

Bad credit is not something that a person seeks to have intentionally. Rather, it is something that people are either unaware of or are unfortunate to have.

Take for example personal bankruptcy. There could be some family emergencies or other situations in your life where you have no control over events that have unfolded. Such events may have led you to become bankrupt. Or perhaps you defaulted on your home or auto loan due to the loss of a job in an economic downturn.

Such events are very bad for your credit score. There may be other events such as paying credit card bills late, paying your utility bills late, getting too close to your credit card limits, regularly making minimum payments on your credit card and not the full amount, and so on. These events are avoidable, but they end up affecting your credit in a negative way.

The most interesting part about bad credit is that most people will find out about their bad credit in the most unexpected of instances. People find out they have bad credit when their loan application gets rejected, or when they get turned down by a credit card company where they may have applied for a new card, or their cell phone contract gets rejected. Such a surprise is not only a shock but also embarrassing at times. Luckily, there is a solution to this problem and it is called credit repair.

So what exactly is credit repairing?

Credit repair is the process of improving your credit score and fixing any errors on your credit report. Once you go through this process, your credit will improve and you will be able to access financial services which you were unable to because of bad credit.

Credit repair can also involve another process called credit monitoring. While credit monitoring is different from credit repair, the two go hand-in-hand in certain situations.

How to go about fixing bad credit?

To fix bad credit, the very first thing you need to do is order your credit report. America has three major credit bureaus, namely Experian, Equifax, and TransUnion.

These three bureaus are the biggest in the nation and they are required by law to provide you with one free annual credit report if you request for one. Once you order your credit report, you need to go through all the items.

To do this, you will first have to educate yourself on what every item on a credit report means and how it changes as per your actions.

While going through credit reports, you will notice two things. First, either the information reported on your credit report is not accurate, or it is accurate but it is a contributing factor to your bad credit.

So, the next step is to figure out why the item is what it is. For example, you could have defaulted on a loan and that is showing up on your credit report. Or perhaps, you made late payments and that is pulling down your credit score. Or, sometimes the credit reporting company has made an error and misreported something which is not actually true.

Lastly, there could be the unfortunate case of identity theft, where your identity may have been stolen and misused, which in turn is leading the credit report to give you a bad credit score.

If the credit bureau made an error or if you are not sure about any particular item on your credit report, then highlight all the items which you think are wrong/suspect, and send a written letter to the credit bureau asking for an explanation about that specific item.

The credit reporting companies are required by law to give you an explanation and proof as to why they entered an item on the credit report the way it was. If they indeed made an error, then they will rectify it and your credit score will improve accordingly.

For reasons other than identity theft or error in reporting, you can still improve your credit score. But in such cases, it may take a while to pull up your credit. You will have to be very patient and change certain habits to consolidate your credit file. You will have to give up on certain expenses to improve your savings rate.

Think of this as a temporary action which you are taking for long-term gain. Secondly, you could ask for a credit limit increase. This helps if your bad credit is due to spending close to the credit card limit. Believe it or not, but being too close to the limit affects your credit negatively. If increasing the credit limit is not possible then you may have to spend less, which would take a serious effort on your end.

Another thing you could do to improve your cash flows and credit quality is consolidating disparate debts. Having multiple smaller debts with varying interest rates could be making you pay more, as the interest rates might be high on some of those debts.

If you can consolidate your debt into one big loan and can get a lower interest rate, then your monthly outflow will also reduce. This could give you better cash flow and allow you to save more. A single consolidated debt looks good on a credit report rather than having multiple debts, and your credit score may improve as a result.

Finally, you can try to get a credit builder loan. Find a neighborhood credit union or small bank who offers credit builder loans. These are loans which you take but cannot spend.

You pay the installments on this loan for the full term. Once you have paid off the loan, the money that gets accumulated (principal and interest) is yours to spend.

The whole process of taking a loan and successfully paying it off helps fix your bad credit. You have to make sacrifices, but it pays off in the longer term.

Can I do the credit repairing process myself?

You can write the letter to the bureau yourself. You can request credit limit increases yourself, and tweak your spending habits too without external help.

In fact, all credit repair companies are required by law to write in their terms and conditions that you can do every credit repair activity that they can do legally.

So, the answer to the question is yes, you can repair your bad credit yourself. But the question really is, are you willing to learn about credit items, credit reports, etc? Are you willing to put in time and effort to write letters, actively manage the correspondence, and represent yourself before creditors and lenders? If you are ok with that, then by all means, go ahead and fix your credit. But what if you are not able to give the time and effort that is needed?

What if you are busy and would rather prefer to pay someone a small fee to get all of the above-mentioned work done? There are plenty of credit repair companies that do this work on a daily basis, and they are quite good at it. Many companies even offer a money back guarantee that if they cannot get at least some part of your credit report fixed, then they will return you the fee which they collected initially.

How to go about choosing a credit repair company?

If you do decide to work with a credit repair company, compare all the important features before finalizing your choice. After all, you may be working with the company for a long time, depending on your case and situation.

The first thing to look for is the reputation of the credit repair company. Explore their website, ask your friends and family if they have used the services of the company in question, look for reviews on the internet, and maybe even speak with their representatives directly. Sometimes, speaking directly can help you get an impression of the quality of service.

Another factor linked to reputation is the history of the company. Check and find out how long the company has been in the business of credit repair. How many customers has it served successfully? Do a majority of those customers say good things about the company? The longevity is an important factor.

Next, compare the pricing models. Price is important because you will be paying the fees with your hard earned money, and you would hate to overpay for a credit repair service. You might be in a financially tough situation and so every dollar counts. Do not sacrifice quality for price though.

The structure of the contract is also worth looking into. You do not want a fixed term contract. You would ideally want something that is flexible and variable term. There is nothing like having the option of discontinuing services from the very next month if you feel the work has been done.

A fixed term contract is good when you know how long you need the services of a credit repair company and would prefer to have the stability of the prices for that period of time.

The strength of the legal and paralegal team is important. A large and diverse team would signal to a potential customer that the company has a lot of expertise and depth in every field. It would make you feel confident that the credit repair company in question can handle any kind of situation that arises.

The quality of the legal team is also important. In fact, it is more important than the number of lawyers. So, try and find out the quality of the legal team in the areas that you think are critical to your situation.

Green-touch has experience in credit repair work as well. It is not just a payday loan company. So, if you are looking to fix bad credit on your file and would like professional assistance at a reasonable cost, then it may be worth exploring Green-touch’s services.

The best way to know more is by filling out the form below or contacting us at our toll-free number. Our knowledgeable customer service representatives will get back to you right away to discuss how you can pull up your credit score.

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