Credit Repair Companies: Reasons to Hire One

Felix Garcia

When it comes to fixing your credit score, experience matters. Even one mistake can harm your credit score. However, some mistakes are worse than others. Some mistakes can take years to get fixed. A credit repair company has the tools and the experience to help you dramatically boost your credit score.

Here are 5 reasons to work with a credit repair company:
Page Consumer Services

1. No Working Knowledge of Credit Repair

Have you ever received your credit reports? Have you ever looked at them? Do you know how each item on your credit report is calculated? Do you know what a credit score is and what is used to calculate it? If you said “no” or if you said “I don’t know,” then you shouldn’t try to repair your credit.

A credit repair company knows exactly how to repair your credit and they know which strategy will work best for you. They can help you build a financial foundation so you don’t have to worry about your financial future. A credit repair company can send you a step-by-step strategy on how to get your credit fixed.

2. Multiple Credit Accounts Lift Your Credit Score

It might sound odd, but if you have a bad credit, closing most of your credit accounts can send your score in the toilet. Having multiple credit cards helps you build credit. However, closing a credit card accounts isn’t good. Doing so will lower your average credit age, which can cost you points on your credit score.

You might have heard that closing a credit card will boost your credit score. This is only true if you pay off your credit card. If you don’t pay it off, having a credit card that you rarely use can be detrimental to your score. Credit repair companies know how to expand your credit responsibly. They can help you use your credit report like a financial board game that puts you in position to win.

3. Lowering Your Credit Utilization

You might think that your high credit card balance is hurting your credit score, but it isn’t. What hurts your credit score is your high credit utilization.

Credit utilization is how much credit you have divided by how much credit you actually have available. For example, if you have $5,000 credit available and you use $2,500, your credit utilization is 50%.

Creditors want to see that you can handle credit responsibly, which means keeping your credit utilization below 30%.

A credit repair company can stop lowering your credit score. For example, let’s say you have 8 credit cards with a $10,000 credit limit. Your credit utilization is 50% ($5,000 divided by $10,000). Your credit card company sees that you easily are going to max out your credit cards.

A credit repair company can consolidate and delete all your debt and then build new credit by paying equal amounts of credit to a different card every month. This lowers your utilization without affecting your credit score.
Page Consumer Services

4. Have a Negative Credit Listing Deleted

Did you know that a majority of people can’t answer a multiple choice question correctly about credit reports? Nearly 90% of people who see a credit report with a negative listing admit that they don’t know what to do about it. A credit repair company can help you delete negative listings from your report.

If you have old negative debt on your credit report, it can have a negative impact on your credit score. Debts stay on your credit report for 7 to 10 years.

They might also be public records. Public records are those negative items that come with a big social stigma. Having a public record on your report can seriously hurt your credit score.

A credit repair company can walk you through the process of removing the negative item. They can help you remove negative items from your credit report, such as, late payments, charge-offs, collection accounts, property taxes, or insolvency.

5. In-Depth Knowledge of Credit

Credit repair isn’t a 1 and done deal. It takes time to get out of debt and it takes time to repair your credit. A credit repair company can help you repair your credit score. Their goal is to help you create a low debt-to-income ratio. They can also help you create an emergency savings fund.

They can also help you set your credit goal. They can show you how you can manage your debt and get better terms on your credit cards.

Working with a reputable company can remove a lot of the stress and headache that comes with filing bankruptcy. A credit repair company will give you a detailed plan to follow and if you have any problems or questions, they are available to help you and walk you through the process.

This is original content from NewsBreak’s Creator Program. Join today to publish and share your own content.

Comments / 0

Published by

There are a number of benefits that you can get from hospice services that I would like to discuss. My aim is to reach out and educate the community on what hospice care is in order to help them make an informed decision about their care. Any questions or concerns that you may have would be my pleasure to address in any way that I can, if I am able to assist you. If you would like to leave a comment, or if you would like to message me directly, please feel free and I will get back to you as soon as I can.

Mission Hills, CA

More from Felix Garcia

Comments / 0