Improving Your Credit Scores
A credit score is a number that represents a person's creditworthiness. In the United States, credit scores range from 300 to 850, with higher scores indicating a better credit history. A low credit score can significantly impact a person's financial health and overall quality of life.
Here are a few ways that low credit scores are affecting Americans:
Difficulty getting approved for loans: When you have a low credit score, it can be challenging to get approved for loans, such as car loans or mortgages. Lenders see you as a higher-risk borrower, which can make them less willing to lend you money. This can make it harder to buy a car, purchase a home, or even get a credit card.
Higher interest rates: Even if you do get approved for a loan with a low credit score, you're likely to pay a higher interest rate. Lenders view borrowers with low credit scores as riskier, so they charge higher interest rates to compensate for the added risk. This means that you'll end up paying more in interest over the life of the loan.
Limited access to credit: If you have a low credit score, you may not be able to access credit when you need it. For example, if you have an unexpected expense, like a medical bill or car repair, you may not be able to get a loan or a credit card to help you cover the cost. This can make it difficult to manage your finances and can even lead to financial hardship.
Difficulty getting approved for housing: Many landlords and property managers check credit scores as part of their tenant screening process. If you have a low credit score, it can be difficult to get approved for an apartment or rental home. This can make it challenging to find a place to live, especially in competitive rental markets.
Higher insurance premiums: Some insurance companies use credit scores as a factor in determining premiums. If you have a low credit score, you may pay higher premiums for things like car or homeowner's insurance.
These are just a few of the ways that low credit scores are affecting Americans. If you're struggling with a low credit score, it's important to take steps to improve it. This can include paying bills on time, paying down debt, and disputing errors on your credit report.
According to a 2019 study by the Consumer Financial Protection Bureau, about 45 million Americans have a credit score below 600, which is considered a "poor" score. This means that nearly 1 in 5 Americans has a low credit score and is likely experiencing some of the challenges outlined above. Low credit scores can have an even greater impact on those who are already marginalized or facing financial hardship.
Here are a few examples of how:
Limited access to affordable housing: As I mentioned earlier, landlords and property managers often check credit scores as part of their tenant screening process. This can make it difficult for those with low credit scores to find affordable housing, which can have a disproportionate impact on low-income individuals and families who are already struggling to make ends meet.
Difficulty starting a business: Starting a business often requires access to loans or lines of credit. However, if you have a low credit score, it can be difficult to get approved for these types of financing. This can make it harder for marginalized individuals to start businesses and build wealth through entrepreneurship.
Limited access to employment: In some cases, employers may check credit scores as part of their hiring process. This can be especially challenging for those who are already struggling financially, as it can limit their employment opportunities and make it harder for them to improve their financial situation.
Limited access to healthcare: Some healthcare providers may check credit scores before providing services or treatments. This can make it harder for those with low credit scores to access healthcare, which can have serious consequences for their health and well-being.
These are just a few examples of how low credit scores can affect the already marginalized in ways that may not affect others. It's important to recognize these disparities and work towards creating a more equitable financial system that provides everyone with equal opportunities to achieve financial stability and success.
Improving your credit score can take time and effort, but it's important to work towards it in order to access better opportunities and financial stability. Here are some steps you can take to improve your credit score:
Check your credit report for errors: Your credit report is a summary of your credit history, and errors can sometimes occur. Check your credit report regularly to make sure everything is accurate, and dispute any errors you find with the credit bureau.
Pay bills on time: Late payments can have a negative impact on your credit score, so make sure to pay all bills on time. Set up automatic payments or reminders if you need to.
Pay down debt: High levels of debt can also negatively impact your credit score. Try to pay down your debts as much as possible, and avoid taking on new debt.
Use credit responsibly: Using credit responsibly can help improve your credit score. Only use credit when necessary, and make sure to pay off balances in full and on time.
Build positive credit history: Building positive credit history can help improve your credit score over time. Consider getting a secured credit card, which requires a deposit but can help you build credit. You can also become an authorized user on someone else's credit card, or take out a small loan and pay it back on time.
Seek professional help: If you're struggling to improve your credit score on your own, consider seeking the help of a credit counselor. They can provide guidance and support in managing your finances and improving your credit.
Remember, improving your credit score takes time and effort, but it's worth it in the long run. By taking steps to improve your credit, you can access better opportunities and achieve greater financial stability.
You may get calls from telemarketers offering low-cost credit repair services. The scam companies nationwide appeal to consumers with poor credit histories who are desperate to improve them in any way possible. They promise, for a low fee, to clean up your credit report and improve your credit score so you can get a car loan, a mortgage, insurance, or even a job.
Desperate consumers fall prey to this scam every single day. Remember, if it sounds too good to be true, it is.
Most credit repair services promise to do unlimited credit report disputes, corrections, and removals with Equifax, Experian, and TransUnion at a meager cost. Still, they ask for money upfront and guarantee deletions -- this is neither possible nor legal. Some even throw in the promise of free credit monitoring or a secured credit card to sweeten the deal, but those deals come with high risk.
Credit Repair Done For You
An ethical credit repair company (usually reputable lawyers, not shysters or web marketers) will not tout miracles, charge you in advance, or make false promises. If they do, sooner or later, the FTC will find them.
A credit repair company was recently shut down and fined by the FTC for making promises it couldn’t keep by assuring buyers that it could remove negative accounts even if accurate and for collecting money in advance for work yet to be performed.
That’s the keyword. Accurate. The foundation of credit repair isn’t an industry trade secret. Using the law with your customized disputes to garner the best possible results. Period. Using existing state and federal credit laws, a credit repair company CAN remove negative information from your credit reports. The fundamentals aren't whether the item is negative or positive. It’s if it's accurate. The FCRA is quite clear on this issue. If it isn't verifiable or accurate, it cannot remain.
You’ve probably been told that your credit history will stick with you forever or it takes years to clean up. While no one can guarantee you a spotless credit record, actual credit repair is a worthwhile investment. If the credit bureaus, collection agencies, and creditors were doing their jobs, credit report repair wouldn't be the top search online. For this reason, people hire credit repair companies to clean up questionable items.
People are desperate because credit reports DO contain errors. Nearly every consumer has an error in at least one credit report from the major credit bureaus. Credit bureaus generate the report they receive from your creditors; they don’t verify it unless you ask.
The simple truth is that the credit bureaus and even furnishers of information (FOI) must comply with federal law. Doing so isn’t so easy for them. You need to leverage that. It will take time, but it’s a very worthwhile investment. Before you hire any credit repair company, make sure you investigate them.
The No-Cost Method - It's Up To You
Do-it-yourself credit repair is free. It’s never too late to become creditworthy - just get started, and remember that it won't happen overnight, and you must commit to doing the work. Doing the work can be justified in how much money you will save if you don't have to hire someone AND in rates if you have an improved credit report.
Where To Begin: Credit Repair Is Like SEO -- It's A Long-Term Goal, Not A One-Day Project
Get all three credit reports.
Each nationwide consumer reporting company — Equifax, Experian, and TransUnion—must provide you with a free copy of your credit report once every 12 months if you ask for it. The three companies have a central website, a toll-free telephone number, and a mailing address for consumers to order the free annual credit reports the government entitles them to. To order, click on annualcreditreport.com or call 1-877- 322-8228.
Education is key in DIY credit repair.
It’s essential to educate yourself, and if you are going to do the work, do some research. You’ll quickly find only a handful of excellent, reputable DIY sites. The information provided can help you identify your problems, whether validating a debt, disputing an expired debt, or merely addressing false information in your credit reports. Our highly effective credit repair letters have been proven to WORK in correcting negative items on your credit that may be outdated, obsolete, or inaccurate (unverifiable).
Know your rights when it comes to credit.
When you combine the correct letters with the right credit laws to cut through the bureaucracy of the credit system, you’ll garner much better results, save money, and avoid mistakes that can cause you more trouble and more time. You’ll also understand the dangers of dealing with bill collectors without proper knowledge. You can make a bad situation worse, like renewing an old debt or getting yourself sued. If you think paying that old collection account will get it deleted from your credit history, you're sadly mistaken -- those will last seven long years if you don’t negotiate the credit rating.
The basics of your credit repair plan will be.
Starting disputes with the credit bureaus, validating debts with collection agencies, following up on each, and keeping records of your progress. You'll want to be organized and track everything because you'll base your follow-up on previous actions or reactions from the credit bureaus and collection agencies.
