Credit Score Trumps All Else
Your credit score, whether you like it or not, is a direct reflection of your buying habits. Recently, we came across a Houston credit repair company, New Day Credit Repair, who can bring virtually anyone’s credit score up by “50-100 points in three to six months.” While this is not unheard of, we would like to bring up some very important points when it comes to credit recovery.
New Lines of Credit
One of the main ideas behind most credit repair companies, and we can verify that this is true, is that you must establish a diversity of trade lines. Perhaps the most important factor when contacting a credit repair company is to ask them what their requirements for you are while they work on repairing your credit. For many folks in the Houston TX area, there happens to be a huge diversity of credit recovery businesses that have not only great reviews but can deliver results.
Length of time for Credit Repair
Many folks don’t know that credit repair doesn’t have to take years. In fact, you might only need 3-6 months to do some serious repair to your credit. Your credit didn’t fall overnight, but it didn’t necessarily happen gradually over ten years either. There were probably a few instances of indiscretion that led to your downfall and your score dropped rather quickly. You probably didn’t have an app that tracked your score on a daily basis so you didn’t realize how quick it all happened. In most folks’ minds, it seems like the last time they checked their credit it was good. Today they find it’s not so hot. The time in between may have been a year or two … or three. So it may seem like it would make sense that it took that amount of time for your score to drop. Don’t let that stop you from making a call today to a company that uses the Fair Credit Reporting Act rules and best practices.
Houston’s New Day Office
Is Credit Repair Legal?
Credit repair is not only legal but it is a booming business in the US. The majority of Americans have $25,000 in debt or more, and they not only want to get out of that debt, but they want to get in to “good debt.” The former would be considered consumer debt for things like food, clothing, fun trips etc… The latter would be buying a home or car, taking out a line of credit for a business, borrowing money for a life event or something tantamount to building equity one way or the other.
The real winners in credit repair are consumers. Consumer debt can be settled quickly and without leaving derogatory claims on your credit report. It has been said that 75% to 80% of all negative claims on one’s credit report are inaccurate or false. That’s when it’s recommended to have a professional in the credit industry take charge for you and go to bat with the loan companies and credit bureaus.
Who should I Use for New Credit?
We are confident that there are good credit companies that don’t charge an arm and a leg for giving you credit. If you have a score of 620 or better, our current favorite is Comerica. They seem to have the best rates including 0% interest for 12-18 months for most cards – if you’re looking at getting credit cards. If you are interested in taking out a loan for a car or getting a mortgage for a home, then you’ll have to stay tuned for future posts. While there are many factors that to consider when making a major equity purchase, the last thing you want to worry about is your credit score or whether the company you’re working with is going to take a huge advantage of you and charge thousands of dollars over the next several years in interest. The best thing you can do is spend a few hundred dollars to get your credit score up so you don’t spend several thousand in interest over the next several years. Keep good habits!