Credit Repair FAQs with Finance Council
Many Americans are concerned about their credit reports, and it’s no surprise because while the average FICO score is increasing, there are a growing number of Americans in the “Very Poor” category, which means it’s near-impossible for them to get home loans, as well as low-rate credit cards and personal loans.
As more individuals become credit-conscious, search engines are being bombarded with credit-related questions. In this guide, we have highlighted and answered the most common ones with help from Finance Council.
Finance Council is a leading credit repair comparison service that connects bad credit users with trusted partners. The ultimate goal is to help you repair your credit, and it’s a service that has been provided for countless Americans.
To learn more about Finance Council, including reviews, testimonials, and information on how you can get a free 10-minute consultation, visit the Finance Council website.
What Happens if My Credit Score Is Low?
A low credit score makes it harder to get a home loan and a car loan. If your score is considered subprime, you’ll also be rejected for most low-rate credit cards and personal loans and could be charged up to 3x more on your car loan.
Bad credit breeds bad debt, which is why so many consumers get stuck in this cycle. When you’re paying more for every credit card and loan, you have less money in your account every month, which means it’s harder to pay down debt and improve your score.
To break out of that cycle, you need to work with a credit repair company, such as those recommended by Finance Council.
If I Can Get a Mortgage, Why Should I Care?
Buying your first house is exciting. You’re eager to complete the purchase, move into your house, and start your new life. You don’t want to wait, and that’s perfectly understandable.
But in rushing the process, you could be doing your future self a severe disservice.
Imagine, for instance, that you have a credit score of between 600 and 620. At this range, you might qualify for a Conventional Loan, and if that’s your ultimate goal, you’ll accept as soon as you’re offered that loan, regardless of the rate.
But by biding your time, and spending a few weeks or months improving your score, you could be quoted between 0.5% and 1% less. That might not sound like a lot, but on a 30-year loan for $200.000, the difference between 4% and 4.5% is over $7.000 during the lifetime of the loan while the difference between 4% and 5% is a staggering $43.000.
Even if your score is good enough to get the loan you want, it can still be improved.
What Is Credit Repair?
The credit repair process involves many techniques, but the ultimate goal is the same. Every credit repair firm will work to improve your credit score as quickly and cleanly as possible, and they do this by removing negative marks, disputing harmful items, helping you to manage your debts, and more.
What Affects My Credit Score?
Your credit score is composed of several different elements:
· Payment History
· Credit Utilization
· Account Age
· Recent Credit
· Credit Variety
These are all weighted differently, with Credit Utilization and Payment History having the most impact.
Some of the things you do will have an instant impact on your score. For instance, clearing your debt will reduce your total used credit, which in turn will improve your credit utilization. Others, such as your Payment History, take a little longer, as the only way to improve that is to keep making your payments on time.
The goal of a credit repair expert, such as those recommended by Finance Council, is to find the solutions that can get you to where you need to be as quickly as possible.
How Much Does a Negative Item Impact my Credit Score?
It’s often said that a hard inquiry will reduce your score by exactly 5 points and that other negative items will have a similar fixed effect. In truth, it all depends on your current score and your credit history, and negative items impact everyone differently.
Generally, however, a hard inquiry will reduce your score by up to 15 points while a late payment can remove anywhere up to 110 points. Bankruptcy has the biggest impact and is followed closely by foreclosure.
Can a Mistake Hurt My Score?
Mistakes happen, and if an incorrect item appears on your report, it could negatively impact your score. It’s frustrating and a little unfair, but that’s where Finance Council’s trusted partners can help. One of the company’s priorities is to remove any items that shouldn’t be there, thus having an almost instant impact on your score.
Is Credit Repair Expensive?
The best credit repair services aren’t free, but if you go through a company like Finance Council, the initial consultation is free, and there is no obligation to buy and no pressure-selling.
Finance Council helps you to find the most suitable credit repair option—one that is effective and affordable. And in the grand scheme of things, when you consider how much these services will save you, it’s always worthwhile.