If you have been searching on the internet for credit repair companies Missouri, then you are aware of the importance of your credit score. And you are aware that this kind of importance can be expressed in dollars and converted into huge savings on more favorable interest rates. Most of us have mortgages, loans, and utilize credit cards. It is just the way we live today. But not all of us have the same interest rates for the same amounts and types of loans, mortgages, and credit cards. Lower interest rates can save you a lot of money in a lifetime of a loan or a mortgage, especially credit cards because interest rates on credit cards vary the most. If you have an excellent credit score you can get an interest rate on a credit card as low as 4%. But this rate can go up to over 20% if your credit score is poor. The difference in this case between an excellent and poor credit score can be expressed in money and it is over 7000 dollars per year on a 5000 dollars payment.
Obviously, it is worthwhile to make an effort and improve your credit score. But you should know a little bit more about credit repair companies before you engage one to fix your credit report and improve your credit score. Also, it is good to know how your credit score is calculated and which factors influence your credit score the most. But first, let’s talk about credit repair companies and how they work.
How Credit Repair Companies Work
The deal with credit repair companies is simple. You pay a monthly fee and they promise to do all the hard work about your credit repair. The ultimate goal is to improve your credit score so you get the lowest interest rates for your prospect loans.
Your credit report is a testimony to how you have handled your credit accounts. It is a record of your existing credit accounts, as well as closed ones. Also, your credit inquires are contained in your credit report. Late payments, unpaid bills, past bankruptcies, and too many credit inquires, may ruin your credit score in a very short time. But, can credit repair companies fix all negative details in your credit report, and how long does it take to do that?
Credit repair companies will promise you to get on the work and start the repairing process immediately. They can contact your creditors and try to negotiate on your behalf in order to get some better loan terms. Usually, they try to dispute all the negative items on your credit report. These processes take time and you shouldn’t expect to see any positive changes in a month or two. It takes 30 days for the credit bureau just to investigate a disputed item in your credit report.
Another reason you won’t see any positive turnaround fast is the monthly fee credit repair companies charge you. They simply don’t want to solve your problems fast. It is in their best interest to prolong the whole credit repair process and charge you for a few extra months. They will justify this tactic with the complexity of your case. Although your case doesn’t have to be that complicated. But it is the way credit repair companies in Missouri do it. It is the same with credit repair companies in every other state.
The Truth About Credit Repair Companies Missouri
The credit repair business has attracted a large number of scammers. Companies that will use grey area tactics like disputing every item in your credit report just to prolong their services and try to charge you for a few more months without real positive changes in your report. Also, scam credit repair companies will try to sell you their “special” services. It is often something they can’t provide you with, like erasing negative, but accurate, information in your credit history.
It would be wise to do a bit of internet research before you decide which credit repair company to hire. Read reviews and testimonials of other people who have already purchased services from credit repair companies. It is a good filter to apply to an endless list of credit repair companies in Missouri and everywhere else in the US. This will help you avoid scammers and choose a legitimate and reliable credit repair company.
These reliable credit repair companies offer a money-back guarantee if the positive change is not shown on your credit report after 90 days and won’t give you unrealistic promises about your credit repair. They are often more expensive than scammers that promise a quick turnaround.
You Can Do It Yourself
The most important fact that you should know about credit repair companies is you don’t need them. Everything they can do for you, you can do it yourself. All three major credit bureaus Equifax, Experian, and TransUnion have instructions on their web pages on how to dispute erroneous information in the credit reports they generate. You have the right to ask for a free credit report and because of the pandemic, you can get a free credit report every week through April 2022.
Actually, you should review your credit report regularly every month or at least 5-6 times a year. When reviewing your credit report make sure you are familiar with all accounts and all the information in your credit report. Any account you are not familiar with is an indication that something is wrong with your credit report. Mistakes in your credit report may also indicate identity theft, which may cause you serious problems. To prevent these problems, stay alert and regularly review your credit reports. Don’t ignore anything reported wrongly in your report. Errors contained in your credit report won’t go away if you don’t dispute them.
How To Build Up Excellent Credit Score
Your lenders and creditors want to see that you are a responsible person. If you don’t pay your bills on time, your credit score will plunge. New loans will be more expensive and it will become harder for you to manage to pay them off. Your goal should be to building up records of good credit history. There is no credit repair company that can help you if you fail to do this. Consistency of your income is a crucial component. Spend your money responsibly. Keep your credit card balances low, manage your debt, and limit applications for new credits. Always have in mind that you will have to pay off all the loaned money. Have a plan on how to do that. Don’t go on a spending spree just because you have some money you loaned. Hoping that you will take the next loan to cover the old one is never a good plan. Based on your credit reports, lenders know quite well how to recognize intentions like these. They will still approve your new loans but the interest rates will only go higher and higher. You will be trapped and finally unable to manage to pay off your debts. Make sure to remember that credit repair companies can’t solve problems generated by irresponsible money spending.