Credit is extended based on past performance. Credit score, FICO, and credit reports are financial industry terms used to discuss a person’s financial reputation and trustworthiness. Companies collect information about your spending trends. Habits like if and when you pay your bills late or not at all and how much money you earn compared to how much you spend are examples of the types of information lenders want to know about borrowers in advance. Credit bureaus compile payment history and lending information into one document known as your credit report. Naturally, your credit score is based on the information in your credit report. As a result of all this, you are given a credit score.
Accessibility to goods and services without having the money to pay the full cost upfront can be a convenient tool. Many companies will agree to allow customers to borrow money as long as they agree to pay it back within a reasonable amount of time. Individuals or businesses that lend money are known as lenders or grantors. Most people use their credit score as buying power for large purchases like a car or a home. Another common reason to use credit is convenience. However, we all know you can’t get something for nothing. Grantors offer loans with the expectation that you will repay what you borrow and an additional fee known as interest.
There are some special cases when a person may not be able to or may choose not to pay back their loan. When credit cards and other loans are added to the regular bills, we pay each month. It’s easy to get overwhelmed and fall behind. Unemployment, a growing family, unexpected expenses, and, let’s be honest…simply poor planning can all lead to financial hardship.
Credit reporting agencies are careful to keep track of anything that falls outside the original agreement's terms. Late payments and missed payments are recorded on your credit report and can lower your credit score. If your credit score falls too low, you become a credit risk. Once a person’s credit becomes damaged and falls below a certain threshold, few companies are willing to take the risk of lending to these individuals for fear they will not be repaid.
Repairing your damaged credit, however, is possible! Actually, it’s your right to challenge the information on your credit report. Statistics have shown that up to 80% of ALL credit reports have errors on them. There should never be any inaccurate or unverifiable information listed on a credit report. The key to successful credit repair is searching for and finding inaccuracies on your credit report and consistently disputing them. The Credit Repair Organizations Act permits consumers to hire a third-party company to dispute accounts they believe are inaccurate or unverifiable. As our client, researching and disputing these inaccuracies on your behalf is our pleasure and priority.
Responses to disputes must be carefully reviewed. Our team of trained, skilled, and certified credit consultants knows exactly what to look for. Occasionally additional steps are required to have errors and inaccuracies removed. We assist our clients in taking these steps and completing the process. Despite our efforts, there may be times when accurate reporting still harms your credit. Time and consistency is the best way to address these items.
Many companies and lenders use your credit score and history to determine whether or not they should lend money to you. Having good credit is a reward for proving your financial trustworthiness. If you have a low credit score, you may have wondered why it is so difficult for you to get approved for some of the things you’ve applied for. A low credit score and poor credit history tell potential lenders that you may be a credit risk. Because most companies are making money, they don’t like to take unnecessary risks.