Credit and Debt Help

Common Warning Signs of Impending Debt Trouble

Admin — Tue, 07 Dec 2010 11:32:41 +0000

Sometimes debt issues can materialize very suddenly, such as with the unexpected loss of a job, but in most cases debt problems do not arise overnight. Usually they grow over a period of months and years. People who are dealing with a serious debt problem are nearly always very aware of it. In contrast, it is easy for many small financial difficulties go unrecognized and unaddressed until they finally grow too serious to ignore.

When it comes to your physical well-being, early diagnosis and treatment of illnesses is preferable, and the same principle applies to your financial health. Not only are “fully developed” debt troubles almost always more serious, they also are generally more challenging and difficult to deal with than small, early-stage conditions. Although every person’s individual circumstances are different, there are several common warning signs of impending debt problems.

1. Not having any financial reserves. Many, many people find themselves in this situation. They may be able to easily take care of their monthly bills and living expenses. However, because they do not have much, if any, money saved for unexpected needs, almost any financial emergency–such as expensive automobile repairs, missing a couple of weeks of work because of injury or lay-off, or necessary medical expenses not covered by insurance–will likely put them in hot financial water very quickly. Many credit professionals recommend setting aside a large enough sum of money to survive on for up to 6 months without your regular income. Having this money reserve will make it possible for you to successfully survive most kinds of unforeseen, temporary financial calamities.

2. Worrying about possibly bouncing a check or going over your limit on a credit card. Having these kinds of worries about whether or not you have enough money available when you need it is a definite indication that you may soon be (if you’re not already) in trouble financially.

3. Being able to make only the minimum required payments on your credit cards, even though your outstanding balances are steadily rising. Obviously, if your credit card balances increase each month, then you are getting deeper and deeper into a financial hole. If this cycle of overspending continues for very long, you will soon find yourself facing some serious debt troubles.

4. Maxing out one or more of your credit cards. Credit cards make it possible for consumers to purchase things that they really cannot afford at the present. A maxed out credit card could be a warning that you may be purchasing more with your credit card than what you are able to easily pay off within a month or two. If so, continuing on that path will almost certainly increase your chances of facing some significant debt issues down the road.

6. Getting cash advances from your credit card in order to make payments on other bills. Actually, if you need to borrow money in order to pay some of your bills, then debt has already become a problem for you. This strategy is risky not only because these cash advances add to your debt, but also because card companies typically charge a significant fee for each cash advance, along with higher interest rates. Acquiring money in this way to meet your monthly financial responsibilities is, at best, a short-term solution to what is likely to be a growing problem.

7. Living paycheck to paycheck. A sizable number of Americans are earning just enough to meet their monthly living expenses. In most cases, people in this situation are trying to live beyond their means, so it is crucial that they either generate more income or slash their expenses–or both. Otherwise, if they should miss or get behind on any of their payments for any reason, it can be extremely difficult for them to get caught up, since they have no extra cash or savings that they can draw on.

If any of these common danger signals accurately describe your circumstances, then you should initiate corrective actions to eliminate them immediately. If you procrastinate on taking action, in most cases your plight will only get worse and become increasingly difficult and painful to address. If you are unsure about how to effectively resolve your problem, then you certainly should consider getting professional assistance.

Debt Proof Living – The Complete Guide to Living Financially Free

Admin — Tue, 30 Nov 2010 12:55:27 +0000

One of the most highly rated self-help books on getting out of debt is Debt-Proof Living: The Complete Guide to Living Financially Free by Mary Hunt. Reader reviews of this book have consistently been very positive. If you are looking for an understandable, doable game plan for getting your debt under control and putting your financial house in order, then you might want to check out this book.

Ms. Hunt speaks with a voice of authority because she has personally experienced being deeply in debt. She reveals how, back in the 1980s, her out of control spending and overuse of credit cards burdened her and her family with over $100,000 in unsecured debt. She tells readers about her family’s struggle to overcome this mountain of debt and to regain control of their financial lives. She knows that people can dig themselves out from under massive debt because she has done it herself. She also knows from personal experience about the self-discipline and many sacrifices that are required.

Most reviewers agree that this book is easy to read and understand. The author displays the ability to explain money management concepts in clear, understandable language. Rather than feeling confused and intimidated by the author’s ideas and suggestions, readers are more likely to feel like, “Hey, I get it. I can do this!” Her Rapid Debt Repayment Plan, for example, is easy to understand, has been proven to work, and can really help people who are struggling to overcome a heavy debt load.

Not only will this book give you a clear, workable plan for getting yourself out of debt, it will also show you how to stay out of debt in the future. The author encourages readers to change their mental mindsets about spending and debt. Otherwise, you are likely to end up in debt trouble again. This book can change the way that you think about money and about debt, and that, in turn, can change your life.

Debt-Proof Living presents a wealth of very good information. In the first half of the book, she addresses topics like the philosophy of debt-proof living, recognizing debt danger signals, good money management, how to repay debts more quickly, the importance of having an emergency fund, and how to change your attitude toward money and debt. In the second half of the book she addresses a variety of other financial issues, including buying or leasing a car, paying for college, mortgages, home equity loans, various types of insurance, investing, and retirement. In fact, there is so much information in this book that some readers report finding it somewhat overwhelming. However, there is no reason why you have to try to read, digest, and use everything all at once. What you can do is take what you need most from the book right away, and then go back to some of the other chapters later on when that information might be more relevant.

Other criticisms of the book are that some of what Ms. Hunt proposes could become a little complicated in actual practice. Also, a few of her record keeping suggestions, though excellent, may become tedious and more than some people will be willing to do. These criticisms may be true, but I think most people will be able to make commonsense adjustments to the author’s suggestions to make them more amenable to their own individual preferences without significantly diminishing the effectiveness of the techniques. Additionally, some of her suggestions, such as giving up your use of credit cards, will be difficult for some people to swallow, but the reality is that, in order to get out of debt, you must be willing to make some sacrifices. Finally, it should also be noted that the author’s Christian perspective may not sit well with some readers, even though it doesn’t actually diminish the power or the usefulness of the author’s methods in any way.

In conclusion, Mary Hunt’s Debt Proof Living is highly recommended if you are looking for a good book on debt management. You may be able to get your hands on a copy of this book at your local library. Or, if you prefer, you can purchase a new or used copy for under twenty bucks.

Should I Try to Fix My Credit Myself

Admin — Wed, 24 Nov 2010 02:45:23 +0000

In today’s tough economic times, with the epidemic of job losses, foreclosures, credit card defaults, and bankruptcies, a growing number of people are finding that their credit is in need of improvement. Unfortunately, many of these people don’t feel that they can afford to get professional credit repair help, and they have no idea how to go about fixing their credit themselves. Consequently, a lot of them will end up doing nothing, resigning themselves to the closed doors and added costs of having poor credit. But you don’t have to be one of those people!

Making the effort to repair your credit now could save you literally thousands of dollars in the coming years through lower interest rates on mortgages, car loans, and credit cards. It should not be a question of whether or not you will repair your credit. The only real question is should you hire someone to do it for you, or should you do it yourself?

A key benefit of using a credit repair company–assuming that you retain a legitimate, reputable one–is that they should know exactly what to do to restore your credit. Because you should be able to count on them to do all that can be done to rescue your credit, you would not have to worry about learning the intricacies of fixing your credit yourself. On the other hand, the major drawback of using a professional company is that they can be very expensive. Depending on the company’s rates, you could spend hundreds or even thousands of dollars over a two- to three-year period. The other major drawback of using a professional credit repair company is that so many of them are scams. You have to do very careful research before signing up with any of them.

Probably the biggest advantage of repairing your own credit is that you can avoid having to pay hundreds, or maybe thousands, of dollars to a repair company. The money you would save by fixing your own credit could be used to pay down some of your debts. Most experts agree that a credit repair company cannot do anything for you that you could not do yourself, if you know how. The major drawback of repairing your credit yourself is that you will have to take the time and make the effort to educate yourself on credit repair. If you don’t educate yourself, your efforts to improve your credit are likely to be much less effective. You should be able to obtain a good book on credit improvement from your local library or bookstore. There are also some excellent do-it-yourself guides that you can purchase for an amount less than the initial set up fee charged by many professional repair companies.

There are valid arguments on both sides of the question of whether you should repair your own credit or hire a company to do it, but there is no one right answer. Each person has to make his/her own decision.

How the Credit CARD Act of 2009 Saves You Money

Admin — Wed, 17 Nov 2010 00:20:16 +0000

The Credit CARD Act of 2009 has been pretty well received by many consumer advocates because, despite its weaknesses, it establishes a number of new regulations that help protect consumers from some of the unsavory practices of the credit card industry. There are a number of different ways in which the protections provided by this new law can save consumers money, and in this article I will describe three of those ways.

First of all, one major benefit of this legislation is that it eliminates the practice known as “universal default.” A universal default provision basically allows the card issuers to raise your interest rate if they find that you have been more than 30 days late on any of your payments to any of your creditors. A critical point here is that the card issuer can raise your interest rate even if all of your payments on that particular card have been made on time. Because they don’t understand (or don’t read) the fine print in their credit card terms and conditions, most consumers are not even aware of the existence of this provision until they are informed that their interest rate is being increased, sometimes doubling or tripling, and perhaps getting as high as 29.99 percent. To make matters worse, these consumers may find themselves stuck with this higher interest rate for years, unless they are able to pay off their entire balance or transfer it to a different card. The outlawing of universal default is undoubtedly saving many consumers hundreds of dollars in interest each year.

Second, the new regulations regarding over limit fees will also save some consumers a lot of money. Previously, over limit fees were a big moneymaker for banks and credit card companies. Although consumer should know and remain aware of their credit limit, there are still a large number who sometimes make multiple credit card charges before they even realize that they have exceeded their credit limit. Before this new law took effect early in 2010, the card issuers were smacking consumers with an over limit fee ($39 is pretty typical) for each one of their over limit transactions. Thus, if a person made five over limit transactions, he/she would find themselves facing up to $195 just in over limit fees for those five transaction, even though the total amount of the five purchases might have been only $50 or less. The provisions in the Credit CARD Act dictate that consumers can no longer be charged any over limit fees unless they choose to opt in to overdraft protection. And those who opt in cannot be charged more than one over limit fee per billing cycle, even if they make multiple over limit transactions. Consumers who choose not to opt-in will simply not be allowed to exceed their credit limit, but in this writer’s opinion, that is not necessarily a bad thing.

A third way in which the new law saves consumers money is through requiring credit card issuers to change the way in which payments are applied to existing balances. Before the Credit CARD Act, consumers could often find themselves carrying credit card balances for which they were being charged different interest rates. This occurred when they made some purchases at a low promotional interest rate and other purchases at the regular interest rate. Or, part of their balance could have been from taking cash advances which usually carry a higher rate of interest. Prior to the new legislation, when you carried balances that were being charged different interest rates, the credit card companies would apply your payment first to the lower interest rate balance and then to the higher interest rate balance. Through this practice, the credit card companies could ensure that 1) you would pay off your lower rate balances first, 2) you would end up taking longer to pay off the higher interest balances, and 3) the company would make more money as a result. Now the Credit CARD Act requires that any amount paid above the monthly minimum payment must first be applied to the highest interest rate balance. This requirement enables consumers to pay off their higher interest balances sooner and thereby save money.

There are other ways in which the new law is beneficial to consumers, but the above are three of the ways in which it helps consumers save.

Three Ways to Get a Handle on Credit Card Debt

Admin — Wed, 10 Nov 2010 03:02:06 +0000

Credit cards are a wonderful convenience because they offer us the freedom to buy something now and pay for it later. Unfortunately, many people use them to buy more than they can actually afford, and before they realize it, all the different purchases have snowballed into a massive amount of debt. If you are one of the many people trapped under a mountain of credit card debt, don’t panic. There are several simple things you can do to get a better handle on and eventually overcome your credit card debt.

Step 1: Immediately curb your credit card spending. Once you recognize that your credit card debt is out of control, it would not be wise to continue adding to the problem by making additional charges. Instead, you need to firmly resolve to not use your card(s) again—except in case of a real emergency—until you have paid off your balance(s) completely or until you have reduced it to a predetermined amount. Alternatively, if you don’t want to sacrifice the convenience of paying for things by credit card, then you will need to commit yourself to paying off all of your new purchases each month so that your credit card balance does not continue to increase.

Step 2: Increase your monthly payments. One of the best ways to decrease your credit card debt more rapidly is to increase, if you can, the amount you pay towards your credit card bill each month. The ideal situation would be to not carry over any balance at all, but if you’re overly burdened with credit card debt, that probably isn’t a viable option. Paying only the minimum payment is what often lands many people in debt trouble. Not only will it stretch your payments out over many years, if not decades, it will also mean that you’ll end up paying hundreds and hundreds of dollars extra in interest. Whenever possible, put in some extra money along with what you’re already paying. Even if you can pay only $20 extra each month, it can go a long way in reducing the total amount of interest that you end up paying.

Step 3: Contact your creditors. If after developing your budget, you find that you simply do not have enough income to cover your monthly living expenses and all of your debt payment obligations, then you should consider contacting your creditors immediately. Tell them why things are difficult for you, and try to work out some type of modified payment plan that reduces your payments to a more manageable level. Creditors understand that if you file bankruptcy, they may get little, if any, of what you owe them, so most of them will be willing to work with you. They may agree to lower the interest rate that you’re paying, the minimum monthly payment, or both! Sometimes they will even forgive a portion of your debt. Don’t wait until your accounts have been turned over to a collection agency. When that happens, your credit will be hurt even more.

There are, of course, other effective steps you can take to gain control of your credit card debt, but any remedy must begin with you first acknowledging that the debt is a problem and then committing yourself to a serious course of action to address it. Credit card debt is something many people all over the country are facing right now, so you’re certainly not alone! For most people, getting rid of this debt will not happen overnight, but if you develop a sensible plan and stick to it, you can start reducing your debt steadily and surely.

The Credit CARD Act of 2009: New Protection for Consumers

Admin — Tue, 02 Nov 2010 16:33:47 +0000

In May of 2009, the U.S. Congress passed the Credit Card Accountability, Responsibility and Disclosure (or Credit CARD) Act. While certainly not everything that consumer advocates have wanted, this new law offers a number of valuable safeguards for credit card users. In this article I will briefly highlight several key components of this important consumer protection legislation.

Restrictions on Interest Rate Increases. This law prohibits credit card companies from raising your interest rate on your existing balances unless you are 60 days late with a payment. (Previously, your interest rate could be raised if you were late with even one payment.) Additionally, if your payment is more than 60 days late and the default interest rate kicks in, the card issuer must lower the rate back to the original rate after you have made six consecutive months of on-time payments. This means that even if you do get behind on your payments and become subject to a high default interest rate, you will now have the opportunity and the right to get your lower rate back. Another new restriction relates to promotional interest rates, which now must remain in place for at least six months before they can be increased. Furthermore, according to the new regulations, the regular interest rate on a credit card cannot be increased during the first 12 months.

New Limitations on Various Fees. The new law also places a number of limitations on various types of credit card fees, most notably on over limit fees. Under the new regulations you will not be subject to over limit fees unless you agree to “opt in” and allow over limit transactions on your account. If you choose not to allow them, then any transaction that would put you over your credit limit are simply be denied. Additionally, card companies are no longer allowed to charge consumers for making payments by phone or over the Internet (but they can still impose a fee on consumers who want expedited payments).

How Payments Are Applied. Really good news for consumers is that the new legislation requires that any amount that a consumer pays above his/her monthly minimum payment must first be applied to the highest interest rate balance. Previously, most credit card companies applied payments first to the lowest rate balances and then to the higher rate balances, a practice which cost consumers more money.

Special Restrictions for Consumers under Age 21. One somewhat controversial portion of this legislation is the portion which restricts credit card access for those under 21 years of age. Consumers under 21 are now allowed to get a credit card only if they can prove they have “independent means” to repay the debts they incur, or if they can get a co-signer aged 21 or older. While the intention of this provision is to protect younger consumers, there are some who question this particular approach to doing so.

The preceding are the most significant changes brought about by the Credit CARD Act of 2009, which took effect in February 2010. While this new law is certainly not perfect, it actually does a lot to protect consumers from some of the abusive practices of credit card companies.

Monitoring Your Credit Report: Pros and Cons of Three Different Strategies

Admin — Tue, 26 Oct 2010 14:33:34 +0000

Although there seems to be much greater awareness now about the importance of checking our credit reports periodically, many people still aren’t sure about exactly how to monitor their credit. In this article, I will identify three different ways in which consumers can monitor their credit, and I will also discuss the advantages and disadvantages of each of these three ways.

The first credit-monitoring strategy would be to request all three of your credit reports at the same time. As you are probably aware, you can get a free copy of your credit report each year from each of the three major credit bureaus. (You can claim your free reports by logging on to annualcreditreport.com, which is the official web site supported by the credit bureaus.) The key advantage of getting your three credit reports all at the same time is that you can directly compare them for inaccuracies and inconsistencies. Another advantage of this approach is that you can monitor your credit for free. Also, this approach involves a minimum amount of time, as you would be requesting and then reviewing your reports only once each year. The main disadvantage of this approach, however, is that you will not be eligible for another free credit report for 12 months. Thus, it would be a full year before your next opportunity to identify any inaccuracies or suspicious activity on your report. If you wanted to check your credit a second time during that year (which you most definitely should do), you would have to pay for your three reports. Another disadvantage of this approach is that the free credit reports do not typically include your credit (or FICO) score. The three major credit bureaus will be happy to sell you that piece of information, of course, as will any number of other web sites.

The second strategy would be to order one of your free credit reports every four months. The key advantage of this strategy is that it would allow you to monitor your credit report throughout the entire year, and again, yhou can do so for free. Additionally, you would have the opportunity to identify any changes or new information on your credit report at four-month intervals, rather than only once a year as in the first strategy. The main disadvantage of this strategy is that you would not be able to immediately compare all three reports at the same time. This means that it might be four or eight months before you recognize any discrepancy between the reports from the different bureaus. A second disadvantage is that this strategy would require you to remember to request your credit reports at three different times each year.

The third strategy is to have your credit report monitored for you by subscribing to one of the many credit-monitoring services. The primary advantage of this strategy is that these services will monitor your credit for you at all three credit bureaus. This is ideal for individuals who do not have the time or the inclination to do so themselves. Another advantage is that these services monitor your credit on a daily basis and alert you about any inaccuracies or unauthorized activity. In this regard they offer superior protection against identity theft, as you could be notified almost immediately of fraudulent activity. The key disadvantage of this strategy is that you will have to pay anywhere from $60 to $180 per year for this service. A second disadvantage is that different companies provide different levels and quality of service. Therefore, it is advisable to shop around and compare various services that are available before signing up for any of them.

Clearly, each of these three methods of monitoring your credit has its own unique advantages and disadvantages. Each consumer must decide for him- or herself which of the three methods is most agreeable to them. What is most important, though, is that you do monitor your credit regularly.

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Why You Should Monitor Your Credit Report on a Regular Basis

Admin — Tue, 19 Oct 2010 12:57:03 +0000

Are you monitoring your credit on a regular basis? If not, then you should be. There are two main reasons why it is so important that you do so.

First of all, regular monitoring is advisable in order to ensure the accuracy of your credit report. The information contained in your report can directly affect many different aspects of your life. For example, it can determine whether or not you are approved for a car or home loan, what interest rate you’ll be charged on your loans, how much you’ll pay for insurance, whether or not a landlord will rent his/her property to you, and even whether or not an employer will choose to hire you. You should not assume that all of the information in your credit report is accurate. According to a 2004 study, nearly 80% of all credit reports contain errors, and about 25% of these errors actually impact the credit score. Given the tremendous importance of your credit report, you would be wise to do what you can to ensure that the information contained in it is as accurate as possible. By regularly reviewing your credit reports for inaccuracies, you’ll be able to bring them to the attention of the various credit bureaus and have them corrected.

Secondly, regular credit monitoring is an absolutely essential tool in the battle against the rising tide of identity theft. It is estimated that up to 10 million Americans are victims of identity theft every year, and for many of these victims, it can take years and lots of hard work to set their records straight. People who regularly monitor their credit can identify suspicious activity early and can then take action immediately to stop a potential identity thief in his or her tracks. On the other hand, if you don’t monitor your credit regularly, an identity thief could do a tremendous amount of damage to your credit before you ever realize that anything is wrong. Therefore, monitoring your credit is extremely important because the sooner you become aware of suspicious activity on your credit report, the sooner you can take corrective action and the better your chances of limiting the damage. (Understand, though, that credit monitoring is only ONE defense against identity theft; there are a number of other steps you can take to protect yourself–but that is the subject for another article!)

As important as credit scores are in many aspects of our daily lives, it is surprising that millions of Americans do not monitor their credit regularly, and many have never even seen a copy of their credit report. Don’t be one of those people who never even think about their credit until there is a serious problem with it. Be proactive by monitoring your credit regularly. A good credit rating is one of your most precious financial assets.

Improving Your Credit Score: Common Myths and Misconceptions

Admin — Wed, 13 Oct 2010 03:20:27 +0000

By Art Garmon, Ph.D.

Because credit scores have become such an integral part of our financial lives, it is important to understand what they’re all about. Unfortunately, though, one survey has revealed that many Americans don’t really understand credit scores or how they work. This article will address some of the most common myths and misconceptions about how to improve your credit score.

1. Each credit bureau has its own formula for computing credit scores. When you get your credit scores from the three different credit bureaus, you will normally see that each of them will vary somewhat, sometimes by as much as 50 points. This variation leads some people to conclude that the various bureaus must be computing their credit scores differently. In actuality, however, the three bureaus use essentially the same formula. What accounts for the differences in scores is the fact that your files at the different bureaus each contain slightly different information about you. This occurs because some creditors report your information to only one credit bureau, while others may choose to report only to a different bureau.

2. Shopping around for the best loan will lower your credit score. This actually can happen, but only under certain circumstances. Credit bureaus recognize that when consumers seek financing for a major purchase, they will often want to shop around for the best loan rate. Therefore, the bureaus usually do not penalize you for this unless the flurry of credit inquiries continues beyond about 2-3 weeks. After that period it is possible your credit score will be affected. Likewise, if you are shopping around for different types of loans (e.g., mortgage, car, and personal loans) all at the same time, your credit score is likely to be negatively affected.

3. If you dispute negative items on your credit report, the credit bureau has to remove them. This is another partially true statement. The credit bureaus are required to remove inaccurate information from your credit report. However, if the information that you are disputing is accurate, then they do not have to remove it, no matter how damaging it might be to your credit. For this reason, if you want to remove negative items on your credit report, you will need to be able to substantiate that the information is inaccurate.

4. Paying off your current debt is a the fastest way to raise your credit score. Contrary to what a lot of people seem to believe, this is not true. Your credit rating is determined more by your past payment performance than it is by the current amount of your debt. While you can certainly help your credit score in the long run by paying down your current debt, the reality is that you won’t see much immediate benefit if you have an established history of making late payments. In this case, the best way to have an effect on your credit score is to begin establishing a new, positive payment history, but doing so will take some time, obviously.

5. Closing old credit accounts will improve your credit score. Closing old credit accounts will usually not help your credit score; in fact, it is more likely to actually lower your score. One of the factors that credit bureaus look at is the ratio of all your outstanding balances to the total amount of credit you have available. Ideally, you want that ratio to be 30% or less, meaning that you are using only 30% of your available credit. Choosing to close a couple of your old credit accounts could increase your ratio considerably, depending on how much available credit you had on those accounts.

6. A credit repair company can erase my bad credit and/or raise my credit score within 1-2 months. Despite what credit repair companies might claim in their advertisements, the reality is that there isn’t much these companies can do for you that you can’t do for yourself, once you educate yourself. If you would prefer to have someone else do the work for you and if you don’t mind paying for it, then working with a reputable credit repair company may be a good idea. However, if you think they have some secret techniques that will clean up your credit like magic, then you’ll be wasting your money. Additionally, many credit repair companies are little more than thinly-disguised scams, so be sure to do your research before hiring a particular company.

These are some of the most common myths and misconceptions about how to improve your credit score, and they illustrate how what you don’t know can hurt you. Given the great importance of credit scores in our society today, I encourage everyone to educate themselves in this area. There is a lot of good information available about how to improve and protect your credit.

Do I Need to Fix My Credit?

Admin — Wed, 06 Oct 2010 03:17:18 +0000

How do you know whether or not you need credit repair? Well, if your applications for loans and credit cards are being turned down repeatedly, then obviously your credit needs fixing. For many people, though, the need for repairing their credit is much less obvious.

Credit scores range between 300 and 850, with the national average score being about 680. A score of 720 or above is considered excellent credit and usually will qualify you for the best loan terms. Individuals with scores in the 600s will still be able to get loans and credit cards, and so many of them will be inclined to think that their credit is all right.

What these people generally tend to overlook, though, is the fact that they will almost certainly have to pay higher interest rates because their credit scores are not high enough to secure them the best available rates. The higher rates that they have to pay will mean higher monthly payments, and each year they will end up paying hundreds, if not thousands, of dollars more in interest than individuals with excellent credit. Plus, people with lower credit scores are also more likely to be turned down for an apartment, to pay higher insurance rates, and maybe even have a harder time landing a job.

Unfortunately, many people mistakenly assume that credit repair is only for people with really bad credit. That is definitely not true. If you have a credit score that is under 720, then you can probably benefit from doing some credit repair. The further you are below the 720 mark, the more you would likely benefit from fixing your credit. Investing the time and the effort to repair your credit should pay off, not only in saving you money, but also in opening up opportunities that might otherwise be closed to you.

Your credit score affects many different areas of your life, so it is definitely to your benefit to do what you can to repair it and then keep it as high as possible.