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What Are The 3 Things That You Must Know To Fix Your Credit Score

Having to find a person who is not in any kind of debt is just not possible. Because everyone in today’s time is in one debt or another, it has become a way of living. This gives birth to a credit score to which most of the people cannot keep up with. These high loans and credit card balances result in a bad credit score. With a poor credit score, you cannot get any loan approved, or you might not be able to get a new credit card. Even if you get a loan, you will be getting it at a high rate of interest. This will only be due to the low credit score. If you want to get rid of all this, you need to find the best way to fix your credit. It is the only way to get your pending loan sanctioned or apply for a job that you are not able to because of the low credit score.

Here are the things three that you must know to fix your credit score:

1. No new credit card purchases:

When you buy a new credit card, it is going to raise your credit utilization ratio. The credit utilization is going to be higher if there are higher balances and this is going to affect the credit score. When you are purchasing something, use cash instead of using your credit card so that there is no bad effect on your credit score. You can also avoid the purchases completely, and use the money saved to lower your credit card balance. When you are successful in lowering your balance, it is going to have a good effect on your credit score.


2. Know your credit report errors: 

Everyone has the right to get access to their credit reports. If you see that there are any kind of error in your credit report, then you can write for those errors to the credit bureau. You can even write to your creditor if there is any mistake in your credit report because of him. There are lot many errors which can affect your credit report, even if you think that it is not possible. An inaccurate credit report can bring down credit score which depends on the information on your credit report. 

3. Pay your past balances:

The best way to fix your credit score is to pay off any past due balances that you could not due to any reason. Also, take note that these past balances are going to make 35 percent of your credit score. You have to pay these balances on time otherwise you will be followed by the collection agents. Even better, you can talk to your credit card issuer about the payments that have been missed in the past. They might be willing to listen to you and help you out. 

If you are looking for the companies that can help you improve your credit score, then you can get in touch with the Reliant Credit Repair, where the professionals are going to help you out in improving your credit score. 

5 Questions To Ask When Hiring Credit Repair Companies

Fixing your credit is a daunting task. But, if you choose a professional credit repair company, then you will get a better experience. There are hundreds of people dealing with credit issues and don’t know how to raise the credit score. Well, professional companies are there to help you with all the credit issues.

With so many credit repair companies around, choosing the right one is challenging. So how will you do that? Don’t worry, below is a list of a few questions to ask when hiring any credit repair company. Let’s discuss them in detail.

What services will be included in a given amount?

Most of the credit repair companies offer the same type of services but remember not all are same. Each company will have a different set of rules and regulations which affects the functioning of the system. Normally, the credit repair companies provide credit counseling and help in budgeting by providing you with the personalized service packages. Before hiring any company, make sure you ask them what all will they include in a given amount and how they will work on your credit issues.

How long does it take to complete the process?

Well, there is no fixed time period to do credit repair. Still, a reputed company will give you a rough idea of the time. There are companies out there which promise the customers to complete the task within a certain time, but remember such companies are making false promises and may end up leading to disappointments. Don’t forget every credit repair case is different; therefore, the time taken will also be different.

What information do I need to provide?


No doubt, every credit repair company is bound to be different. But the FICO guidelines works the same for every company. Not every company need a mountain of paperwork and will do the job with fewer hassles. Some of the common documents you might require includes:

➨ Current address
➨ Identification (passport or any other photo ID)
➨ Employment Information
➨ Bank account numbers
➨ Bankruptcy Paperwork
➨ List of debts and assets.
➨ Bank and credit card balance.
➨ Contact Information
➨ Social Security Number
➨ EIN (especially if you own a business)
➨ Bankruptcy Paperwork

Note: The documents may vary depending on the company you choose.

What factors contribute to my credit score?

If you want to know what factors affect your credit score or how to fix credit score fast, then you need an experienced and reliable company. They know how to do the job and guide you in the best possible way. Speaking of the factors contributing to credit score, these include - inquiries, debt-to-income ratio, and age of your accounts. A good company will not only well-versed about these details but also know proper strategies to fix them effectively.

What score should you expect after the repair is done?

For that, ask the credit counselors in the credit repair companies and let them openly about what you should expect from the procedure. Credit repair takes months and even years, so don’t choose a company which makes false claims and lofty promises.

Considering these few questions will help you pick the right credit repair company. If you are looking for a reputed credit repair company near you, then look no further and choose Reliant Credit Repair. Whether you are looking for a solution to increase credit score after bankruptcy or merely looking for credit repair consultations, they offer all these services. Visit their official website to know more.
 

4 Risks You Should Consider Before Going for Credit Card Debt Consolidation

 

You have to be proactive and really very smart when money is involved. Credit card debt consolidation is most likely to be good for your financial status if you act wisely. However, there are some risks you have to consider before going for any debt consolidation programs.       

You Might Have To Pay More Interest  

This is the biggest risk associated with a debt management program. In case the loan you are consolidating has a longer loan term, chances are you will have to pay more interest if there is some other loan kept as is. Credit card debt consolidation lowers the monthly payments. Some people, on the other hand, choose to pay the same amount and reap the benefits of a lower interest rate. Making reduced monthly payments might not be ideal as you will require more time to pay off the debt. And at the moment you will be debt-free, you will have already paid higher charges.      

It Will Temporarily Hit Your Credit  

You rightly think that paying off debt with this temporary hit to the credit is a winning situation. Still, it is a risk. Every lender will go through your credit report before you take a home equity loan, new credit card or any other loan for debt consolidation. Applying for a new form of credit will affect your credit score in two ways. First of all, it is a hard inquiry and it will hit your credit score. This new credit inquiry will be there on the credit report for a year. You will decrease the average age of your credit by taking a new loan. This will eventually reduce your credit score.                   

Don’t let this risk discourage you. Only take calculated decisions.

You Might Have To Pay Debt Relief Fee

Many consolidation companies charge a high fee for servicing your debt. So not reading reviews of the lender can be a big mistake.     

The Underlying Issue Might Still Remain Unsolved

Taking a loan for paying off existing debts is not the solution. You are not fixing the actual problem. Debts are unavoidable in case of medical emergency and some other emergencies. However, debts due to overspending can be easily avoided. You are simply taking a loan to repay another loan. So, you have to do something with your spending habits if the debt is due to overspending.           

Better explain your situation to an expert in credit card debt consolidation before making any decision. So these are the four risks associated to working with a debt consolidation program. So the next time you think of choosing one, make sure you take guidance of professionals or gain some knowledge first.