Do Credit Repair Services Actually Work?

If your credit score is suffering, you’ll do practically anything to repair it. However, there are all sorts of scams out there that claim to improve your score. How are you supposed to know the difference? When you come across credit repair services on the internet, it’s not easy to know whether you’re looking at something legitimate.

Of course, credit repair services cost money as well, so you have to question whether they’re even worth it. Is it such a big deal to have a poor credit score? Well, we’re going to break this down for you today, and provide you with the information you need to know about credit repair services.

What Are Credit Repair Services?

A credit repair service is there to try and right the wrongs on your credit report. They’ll analyze your credit score to find out why it’s so low, and then try and improve it. They are experts in their field, so they know all the tricks of the trade and they’ll do their best to turn the problem around. In some cases, it might just be as simple as rectifying wrongs like basic errors in your personal information. Not many of us truly understand how credit works and what goes on the report, so these companies are there to help us out.

Why Do I Need To Repair My Credit, Anyway?

Good question! If you aren’t sure why you need to repair your credit, it’s a sure sign that you shouldn’t be trying to handle this task by yourself. Your credit is one of the most important things you need to get right. In the future, when you’re planning to buy houses or take out big loans, you credit score will come into play. If it isn’t up to scratch, you’ll miss out on many opportunities. But don’t fear! A poor credit score comes about as a result of failing to make payments. If this rarely happens to you, your credit score will probably be quite good! However, if you struggle to pay on time, your credit rating will slowly begin to decline. Eventually, it’ll get out of hand, and it’s a good idea to use a credit repair service before you get to that point.


I’ve Heard About Scams…

It’s true that some companies trading as “credit repair services” are merely a scam to provide false hope. Spotting one of these companies is simple as long as you know what you’re doing. Do you research ahead of time and read reviews about the company you intend to contact. For example, a quick glance of Sky Blue Credit Repair reviews shows plenty of positive feedback. You should never be in a position to get scammed as long as you’re taking the right measures to prepare in advance.


How Can They Help Me?

The most obvious way that a credit repair company can help is to speed up the process of improving your credit score. As previously mentioned, they can spot certain mistakes or errors which they can then challenge with the credit bureaus. You can’t always guarantee a positive result, even when the professionals are involved. Some services offer money back guarantees in case they can’t make any real progress. In a nutshell, these companies are there to do everything they can to clean up your credit score by identifying areas of improvement. They are a quick way of solving the problem, and they’ll be able to give you tips to manage your credit more effectively in the future.


Where Can I Find Them?

You’ll find the majority of credit repair services online. A quick Google search will present a vast number of potential options for you to consider, but remember what we’ve already spoken about. Before you go contacting anyone for assistance, make sure you do your research. What you’ll find in the listings of a search engine is not always reputable. As long as you’ve checked reviews beforehand and ensured it’s the right solution for you, you’ll get value for money.

So, it’s clear that credit repair services do work. The key factor in all of this is making sure you do the right preparation beforehand. You take it seriously with the right amount of care, as a good credit score is such an important thing to have. Even if you don’t intend to use it much right now, it’ll affect your future for things like mortgages and loans. Do what it takes to repair your credit score now, and you won’t ever have to worry about it when the time comes.

source: 20smoney.com

Tips to Ensure Your Bad Credit Doesn’t Cost You a Job

Unbelievably your bad credit can cost you a job. Employers can examine you and if they discover your credit score is low, they may decide not to employ you.

Why is this?

They believe it is a mark of a lack of responsibility. Someone who cannot take care of their finances should not have a position of responsibility within the company. It is a hard reality to deal with. There are actions you can take to ensure this does not happen, though.

Establish a Secure Line of Credit

Store cards and cards for people who have bad credit are an ideal way to begin rebuilding your credit score. There are two main features to these lines of credit:

1. They have higher interest rates.

2. You can expect them to have far lower limits.

They are like the training wheels of the financial world. Once you learn how to use these correctly, you can graduate to riskier cards with higher limits and lower rates.

Utilization Rates

You should never use more than 30% of your credit limit at one time. This is known as the utilization rate. If you have a utilization rate of 30% or over, this is a sign you are financially irresponsible. It is an example of you relying on your cards to survive, and that is not a good sign.

Only go over these limits in an emergency, and make sure you get below this limit as soon as you can to preserve your credit score.

Pay On-Time and in Full

Late and partial payments have the biggest detrimental impact on your credit score. Whenever you make a purchase on a card, you should always check whether you can meet the repayment by the deadline. If you cannot do not make the purchase.

When Your Score Improves

As your score creeps towards the 680 mark this is where you start to appear on the databases of credit card companies. This is where they are interested in sending you offers for higher tier credit cards. Acting in the wrong way here can cause your score to plummet once again.  Just be sure that there are some things that can kill your credit score.

If you want to keep your chances of getting that job high, stick to the same principles as before. Only take higher tier credit cards if you know you can make the repayments and prevent yourself from getting carried away.

On the other hand, dealing with higher amounts of credit successfully can continue to push your credit score ever higher. A bad credit score can destroy your ability to get a job, but a good credit score can enhance it.

Conclusion

It is unfair that something like personal finance can now come into finding a job. However, we cannot do anything about it. Your only option is to work on improving your credit score.

It really depends on the type of job you are applying for, though. Remember that good personal finance is a mark of responsibility and integrity. If you are applying for a position that requires both of these things, expect them to check your score. If not, you might not need a good credit score.

Have you ever encountered a situation where a credit score has held you back from getting a job?

source: 20smoney.com

Five Easy Steps to a Better Credit Score

Improving credit score is not really a rocket science.  Check out these five easy steps on how you can get a better credit score:

Apply for a credit card if you don’t have one.  Using a credit card regularly and paying off your monthly charges on time is a great way to boost your credit score.  This does not mean you should spend a fortune on credit card shopping.  You can use your credit card to pay for a small purchase so repayment can be easy.

Choose a credit card with a low rate and with features that matches your lifestyle.  Read and understand the fine print before submitting your application.  Make sure that your payments are reported to the available credit to maintain a high score.  If you own a credit card or credit cards, check your balance first and plan your spending ahead to avoid maxing out your limit.


Manage different types of accounts.  It’s not enough to have a credit card or multiple credit cards in your name.  You can further improve your credit rating by acquiring different types of debt such as a personal loan, a student loan, a car loan, or if you possible, a mortgage loan.

Lenders who check credit history are interested in how capable you are of manage debt and credit.  If you have a credit card, and at least two different loans in your name, this will surely strengthen your credit standing.  Of course, it’s important for you to submit your monthly loan payments on time to protect your personal credit.

Check your credit report regularly.  Consumers are entitled to one free report from each bureau every 12 months or annually. You can visit www.annualcreditreport.com to order your free report for this year.  You may choose to request all your three reports from the three bureaus at once or you can order one report from one bureau throughout the year.  If you want to directly order from a credit bureau, there is a fee of $9 to $12 per report.

Checking your credit report will give you the chance to examine it for possible errors. In case you find an incorrect detail, you can send a dispute letter to the bureau that issued your report.  You must also ensure that all your account activities are accurately recorded.

source: creditcreators.com

Can One Cash Advance Help You Get Another?

When it comes to money management tips for students, the main tip that all students should heed is this: Work hard to make sure that you maintain a good credit score. It can impact your financial options for the rest of your life. That being said, it is important to look at the impact that taking out even small loans can have on your ability to get similar loans in the future.

Have you already gone out and picked up a cash advance sometime in the last few years, and did you pay it back on time? Are you now wondering if what you did with that advance is going to help you get another one? In some ways, this is like looking at a good track record for any type of loan. If you get two car loans and pay them off in a timely fashion, the dealer is going to be very likely to give you a third car loan as long as your financial situation still looks good. Based on what you have done in the past, he is going to trust you.

To some degree, this is also true with cash advances. The lenders are always trying to minimize risk. They want to loan out money to people who are actually going to return it to them. This makes their jobs easier and ensures that they do not have to go through expensive court cases and claims processes. It is ideal for lenders, and they are going to like working with you if your track record shows that you are this type of borrower. Your history of taking out advances and then paying them off is going to help you out.

However, it is also worth noting that most cash advance lenders do not look at your credit history. Since the loans are small, they are not as worried about what you did or did not do in the past. They are far more intrigued by your current income levels. They know that your prior struggles, if you did not pay off some loans when you were unemployed, are not going to mean anything if you now have a job. Therefore, they may not even check your history, so your positive borrowing habits from the past might not help you.

However, you should not worry about this too much. If you have a good track record, it certainly will not hurt you. It is either going to help or it is going to be ignored. Either way, you have a good chance of getting the loan that you are after. It all depends on the lender that you choose and the way that they set up all of their policies for screening and approving potential borrowers.

source: 20smoney.com