What are the advantages of enlisting the services of a credit repair company?

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A sizable number of individuals with a poor credit rating prefer to restore their rating on their own. The number one reason they cite for this is that credit repair is an expensive undertaking when a credit repair agency is involved. What most people don’t realise is that this is just an exaggerated belief and that enlisting the services of a credit repair agency may be less costly and more beneficial than they think. For instance, paying a credit repair professional a monthly fee goes a long way in ensuring that you don’t pay exorbitant interest rates in the foreseeable future when applying for a loan facility or a mobile phone contract. That said, what are some of the advantages of enlisting the services of a credit repair company?

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They understand the law

As professionals working in the credit restoration industry, they are up to date with various laws governing credit repair and are therefore better placed to handle the whole process professionally and within the law. The credit repair company will leverage the laws in your favour, operate within the set industry standards and operations and ensure that the whole process is done professionally and in accordance with the laws of the land. The same cannot be said of a person who chooses to restore credit rating on their own!

A credit repair company takes charge

Working with credit bureaus as well as creditors can be tiresome not to mention involved especially when you want to resolve a number of issues. By enlisting the services of a credit repair agency, they basically take charge of working with credit bureaus as well as creditors and resolve any outstanding issues on your behalf. You simply sit back and let the professionals handle everything.

You save time

When you hire a credit repair company, you save a lot of time you would have used running up and down to meet and reason with creditors and what not. A credit repair agency will handle everything on your behalf while you focus on other interesting aspects of your life. They are responsible for reviewing your credit report, drafting letters, making appointments, doing follow ups just to mention but a few while you wait to see the results. Your personal time is therefore freed up and you can use it on other important tasks.

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In a nutshell, enlisting the services of a credit repair company ensures that you enjoy long-term benefits. You will in the future enjoy faster loan approvals, lower interest rates and ultimately, peace of mind!

Credit repair: sure-fire ways to rebuild your credit score

In as much as you might be having legitimate excuses as to why you missed a payment or two in the past, lenders usually are not in the mood to hear your excuses. To them, you only have two options – their way or the highway. A lot of people with a poor credit rating have had to contend with rejections or high-interest rates because of a poor credit rating. In light of this, credit repair should be uppermost in your mind. You definitely do not want to suffer high rejection rates or deal with exorbitant interest rates for the rest of your life. So how can you go about rebuilding your credit score?

Never ever miss making a single payment

The reason you are in a mess right now and your credit score is in poor shape is because of missed payments in the past. As such, if you are keen on rebuilding or repairing your credit score, you should make sure that you pay all your dues on time without defaulting. Late payments negatively affect your credit score. Timely repayments show that you are reliable, trustworthy and diligent in meeting your obligations. Some of the strategies you can utilise to make sure you never miss a payment include setting up an automatic payment with your bank, setting reminder alerts on your phone or organising to be sent reminder emails every time your bill is due. Over a period of time, you will be able to positively impact your credit score.

Keep open your older credit card accounts

If you have an older credit account with a good credit history, it is advisable that you keep it active rather than closing it. The moment you close a good credit card account with a good credit history, it means that after a period of 10 years, the history will be deleted and there won’t be a trace of it on your credit report. Keeping older accounts active will therefore go a long way in helping your efforts to rebuild your credit score. In other words, don’t close good old credit accounts but rather keep them live!

Drastically reduce debt on revolving credit accounts

What most people are unaware of is the fact that lenders not only look at a person’s credit score but also keenly analyse a person’s utilization ratio. To put it into perspective, if you owe a sum of £5000 on a given credit card whose credit limit is around £10000. It means that you have in essence utilized up to 50% of your available credit. In other words, you have a 50% utilization rate which lenders find to be very high and which could in essence hurt your credit rating. As such, you should endeavour to reduce your utilization to below 30% on all your revolving credit accounts. Simply charge on your credit card what you are capable of repaying on a monthly basis without straining your finances.

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Audit your credit report accounts

At times, your credit rating could be poor because of errors and incorrect entries. A lot of people are not privy to the fact that they can access their credit report for free once a year. In other words, you could actually check your credit report say every 3 or 4 months from a different bureau and ascertain whether the information contained therein is correct and factual.