Credit restoration (Credit repair)
Why use credit repair? Okay, maybe that’s not a question that stirs you awake in the middle of the night with a burning desire to resolve. But actually it’s a pretty important question to ask for many of us and our financial lives. There are literally dozens of reasons why to repair your credit. This article focuses on 6 of them that will likely have the biggest impact on your life.
1. Reduce anxiety
One of the biggest problems with bad credit is the psychological effect it can have on us. Having credit issues can weigh on your mind, creating greater anxiety in your life. When you have good credit you have control over an important part of your life. You feel better about your situation, and your general sense of well-being improves. Knowing that the next phone call won’t be some debt collector calling to harass you can bring real piece of mind.
2. Save money
The fact is, when you have credit issues you will have to pay more for a lot things. Poor credit will mean you’ll have to pay higher interest on your credit cards, personal loans, and mortgage. This can add up to thousands of dollars a year in extra expense – all because of poor credit. Also, things like insurance premiums are based in part on credit as well – requiring people with poor credit to pay more in premiums than a customer with good credit.
3. Premium credit cards
There are many interesting credit cards available today that give away rewards, points that can be redeemed for gifts, or cash back programs as incentives for whenever the cards are used. But to qualify for cards that offer these benefits you have to have very good credit. On the other hand, with poor credit you’re often forced into a substandard cards that have extremely high interest rates and offer no benefits. Or worse, a secured card where you’re actually charging against your own money deposited with the credit card company.
4. Getting a new place
Having good credit will allow you to buy a home and overall pay much less for it in the long run. To qualify for a mortgage to buy a home you need to have good credit. And to get a good mortgage, one with a lower interest rate, also requires good credit.
This can also apply for renting an apartment. These days most owners of rental space will run a background check that includes credit history before leasing. Lower credit may disqualify you for that apartment you had your eye on.
5. A New Car
Like qualifying for a mortgage you’ll need good credit to get a loan for buying a new or used car. And the strength of your credit will also determine what the finance charges will be. Consumers with bad credit will have to pay much more in finance charges to buy a car.
6. A New Job
Many employers when evaluating candidates for a new job will also pull their credit as a way of evaluating how responsible they are. And for some jobs that handle money or consumer financial information, credit is run to ensure there aren’t any concerns based on the candidates background. Bad credit can disqualify you for that job you would have otherwise gotten.
As you can see, having bad credit can have a huge impact on your life – especially a financial impact. If you have credit issues a great first step in turning it around is with credit repair. A professional credit repair firm like The Credit People can usually speed up the time it takes to work through the process and get you to a better credit position quicker. And as you can see for the article, the cost savings you’ll have with better credit should more than offset the cost for their help. But however you choose to handle it, through a professional firm or DIY, credit repair is one of the best things you can do to improve your personal finances.
Checkout this video on credit and the credit repair process...