Credit Repair

What is credit repair and how does it affect me?

Credit Repair: Correcting Errors, Ensuring Accuracy, and Getting Affordable Loans and Rates from Quality Institutions

Your credit score is extremely important when it comes to wanting to borrow money or take out any form of credit. Good credit is a key ingredient in our modern lives – not just for major purchases like buying a vehicle or a new home, but also for everyday essentials such as contract mobile phones and insurances. Some employers might even check a potential employee’s credit history to see another angle of their character before hiring them.

It’s still possible for individuals with low credit scores to secure a loan, but lenders seldom offer their best rates in these circumstances, and could put a loan out of affordable reach due to higher rates and increased monthly payments.

However, because of the importance of a decent credit score, those with below average or poor credit scores can miss out, or at best be offered a lesser deal – so ensuring your credit file is shipshape and your score is the best it can be is very important.

Credit can be negatively affected in a number of ways, usually by not making loan or credit card payments on time, but even those red-letter bills can be reported on your credit file.

Ironically, it can also be the result of payment protection insurance plans offered by banks and building societies. Payment protection plans add an additional payment (approximately 20% to 50%) to the loan payment. In hard times, this can make the difference between being able to pay an instalment on time or not, and will still affect your credit rating negatively if a payment date is missed. Even if you’ve been mis-sold a payment protection plan and since been awarded compensation, any notes on your credit file will remain for the duration.

So, what is credit repair and how does it affect me?

Research has shown that 79% of credit reports have errors in them, making it more difficult for people to obtain credit, often for reasons that aren’t their fault to begin with. Fortunately, these credit report errors can be caught by banks and companies that specialise in this area and removed from credit files. Clearing up credit issues can make it easier for people to borrow money and at more affordable rates.

Credit repair does just this – a person’s credit report will be reviewed meticulously by a trained credit repair professional in order to locate any errors.  If errors are discovered, action will be taken to ensure that they are fixed and the credit report reflects the change.

These corrections can be the key to increasing credit scores and thus increasing the chances of getting approved for future credit products – vehicle finance to purchase a reliable vehicle for the family, a 0% credit card to help spread the cost of one-off expenses, or a loan to boost a family business.

So there you have it – don’t continue to accept being turned down by banks and credit card companies or accept less than the best interest rates. If you think there’s a possibility that your credit file may be incorrect, contact a trusted financial institution and start getting the great rates you deserve.