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Should You Use a Credit Repair Service?

Applying for something like a mortgage or an auto loan is difficult if you have bad credit. With poor credit, you won’t qualify for low interest rates and you end up having to pay back more than you otherwise would, making it more difficult to keep up with payments. This situation is especially frustrating if you’ve worked on improving your credit, but feel like your score doesn’t reflect that you’ve made major changes to your spending habits. If only there was someone out there to help you. Actually, there is!   What is a Credit Repair Service? Credit repair companies help clients review their credit reports and correct or remove inaccurate items to help improve scores. This team helps you understand and repair your credit by first analyzing your credit report and then disputing inaccuracies with credit bureaus and creditors. A credit repair service has the experience and knowledge to tackle debt issues that could be difficult to resolve on your own, especially if you’re dealing with very large credit card companies who can be notoriously difficult. It’s important to note here that credit repair companies are different from credit counseling agencies. Credit counseling organizations are normally nonprofit. They advise about debt and finance management, work on a financial plan with you, and help you get a copy of your credit report. Should You Use a Credit Repair Service? In a word, yes! Whether you choose a credit repair company or are able to get into a nonprofit credit counseling agency, you definitely want to work with a team of experts to repair your credit. They can actually help you remove debt. The credit repair service will first request and review your credit report from the major credit bureaus, which are TransUnion, Experian, and Equifax. Then, they will create and execute a plan to fix any discrepancies. Accounts that don’t belong to you, duplicate accounts, incorrect inquiries, and inaccurate accounts can unfairly take a toll on your credit score.  The credit repair service knows what to look for as far as these inaccuracies go, which is why working with them can save you the time and effort needed to review each report line by line. By submitting a dispute, you’re requesting the credit bureau review the accuracy of the information on your credit report. The bureaus are required to either correct or remove these if they’re unable to verify them. ...
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What is the Best Way to Fix Your Credit?

When you have bad credit, you have one thing on your mind: fixing it. A poor credit score, typically meaning below 670, can stop you from the things you need and want, like getting a new car loan, renting a nice apartment, or being approved for the mortgage on your dream home. The good news is that it’s possible to improve your credit scores by following a few simple steps. The bad news is that depending on exactly how bad your credit is, these may not be good enough or fast enough. You don’t just want to fix your credit, you want to do it in the best way possible. You’ve come to the right place because that is precisely what we do here at Safe Credit Solutions! The Best Way to Fix Your Credit Each person’s financial situation is unique and complex. The best steps that can help you fix your credit score will depend on your specific credit situation. That being said, a few tried-and true methods include: #1 Check your credit score on a regular basis. You can check your credit score for free through credit scoring websites or some credit card providers. You can’t know what to improve until you know what is in your report! Plus, it’s possible that there are some errors on your report and your score will jump up once they are fixed. Experts recommend checking your credit score once a month. #2 Open new accounts with major lenders. Opening new accounts that will be reported to the major credit bureaus is an important step in building or rebuilding your credit. Having at least three to five open and active credit accounts can be helpful in not only fixing it but doing so much quicker. #3 Don’t miss payments. This is one of the most important factors in determining your credit score! You want to earn a long history of on-time payments, as this can help you achieve excellent credit scores. You’ll need to make sure you don’t miss loan or credit card payments by more than 29 days. Any payments that are at least 30 days late can be reported and hurt your credit score. #4 Catch up on past-due accounts. A late payment can remain on your credit report for up to seven years, so paying them off and having all your accounts current will be good for your...
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How Long Does it Take to Repair Your Credit?

Credit ratings affect nearly all aspects of our modern lives. When you have poor credit, you have one question on your mind. How long does it take to repair your credit? The most realistic answer to this very important question is, “it depends.”  Each person’s financial situation is unique and complex. According to Forbes, depending on where you’re starting from and how you manage your finances, it could take anywhere from a month to as much as 10 years. That’s quite a vast range. We don’t want to leave you with this unsatisfactory answer, so we’ll break down exactly how long it could possibly take and which factors will affect how long it will take for you to repair your credit. How Long Does it Take to Repair Your Credit? If you have a bad credit score, it may feel like it follows you wherever you go. How long do you have to wait to see a change? The amount of time it takes to repair your credit score will vary based on these three factors: #1 Length of time you’ve had credit. In some cases, no credit is actually seen as bad credit. Lenders want proof that you can repay back what you agree to owe. If you’re just starting out, it may be easy to repair your credit score by simply opening a credit card and paying it off responsibly for a month or two. It is worth noting that this can have a bigger impact if you’re new to using credit than if you have a more established credit file. #2 Your current credit score. This isn’t guesswork; there’s actually a very simple credit score chart. Anywhere from 720-50 is considered excellent credit, 690-719 is good, 630-689 is fair, and 300-629 is bad. It makes sense that it takes longer to reach 720 from 350 than 630! #3 Any negative impact and the type. While all bad credit may be looked at the same, not all negative marks are created equal. Paying a bill 30 days late won’t impact your credit score nearly as much as paying 120 days late. Declaring bankruptcy or going through a foreclosure can also have larger negative impacts on your credit score than, say, paying one month’s credit card bill a few weeks late. Negative payment information, such as collections, late payments and Chapter 13 bankruptcy, will remain on your credit...
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Can a Credit Repair Company Remove Debt?

No one ever wants to be in debt, yet millions of Americans find themselves in debt. Many of these people struggle to get out. Whether you lost your job and can no longer make the payments you thought you would be able to, had a medical situation that cost more than you could repay, or any other unforeseen situation, you’re now one of the many, many Americans who are struggling with unpaid debt and a poor credit score. You know you need to, but you simply cannot pay back your debt. This debt drags down your budget. It forbids you from building money and it can stop you from achieving your goals of owning a home, a reliable car, and more. This doesn’t have to be what the rest of your life is like. A credit repair company is able to help. This can be done in a few different ways: #1 Credit guidance Professional help can get you out of debt. You’ll go to the credit repair company and take in a list of the debts you own and your current per month expenses. The support works with you to put together a price range you can follow. Then they contact your creditors and work out a low interest rate for your debts.  #2 Debt payment plan You have a better chance at success if you set up a debt payment plan and work accordingly to get out of your debt. This is the most effective way to boost your credit score and repay your debts. First, you need to make a list of your debts that you wish to pay them off. Secondly, follow a written budget every month. The key is to control your expenses and build money in the future. Most individuals who select to get out of debt by this method do not go back into debt again!  #3 Loan Consolidation People select loan consolidation to get a low interest rate and to make expenses more manageable. These loans are installment loans, which means there is a fixed period of time for paying off the loans. If you choose this route, be sure to also address your spending habits and why you got yourself buried in debt in the first place. Otherwise, you may find yourself back in debt again in the future. #4 Bankruptcy This is the last recourse. If you’re considering bankruptcy,...
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5 Things Not to do While Repairing Your Credit

Repairing your credit is a long process. As much as you would love to repair your credit overnight, it’s going to take some time. While it is happening, you’re going to need to be careful. Making a mistake during the process can set you back to a frustrating spot. You may even find yourself with more unpaid debt and a worse credit score than when you began! For this reason, we want to ensure that you are educated as far as what you should avoid doing while you are working to repair your credit. This includes: #1 Missing some credit card payments in lieu of others. Prioritizing payments is smart. Skipping some payments in order to put money towards others is not. If you want your credit to improve (and you do!), you should not miss payments. Your credit will continue to get worse instead of better if you miss some payments, even if you’re making others. If you absolutely have to choose between paying a collection account or paying an account that is still current, pick the account that is current. #2 Canceling credit card accounts. A lot of people do not realize that closing a credit card can be bad for your credit score, especially if it is a credit card that has plenty of room on it or one of your older credit cards. Closing the account negatively affects your open lines of credit. When you close a credit card account, you are reducing the amount of open credit available to you. This can cause your credit utilization rate to increase, which could have a negative impact on your credit score. You will never improve your credit score by closing a credit card, so think twice about canceling one. #3 Talking directly to debt collectors. When you’re contacted by a debt collector, the best thing you can do is simply tell them to send it to you in writing and to stop calling. Without admitting the debt is yours, ask who the original creditor was, the original debt amount, and how much is still owed. Then, ignore their phone calls and let a professional help repair your credit. #4 Applying for any new loans. Now isn’t the time to buy a new house, car, boat, sofa, or anything else that requires you to take out a loan. Do not even open a new credit card. Any...
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