There are many ways to improve your credit score by working with credit repair companies in Atlanta, but when it comes to the world of credit reports and credit scores, there are a lot of companies out there promising the moon.
There are a variety of different ways a person can build credit and improve their score, and using a service like Self Credit Builder is one way to achieve that goal.
What Is a Credit Score, and How Does It Work?
In the United States, there are three companies that are responsible for whether or not you are approved for all sorts of financial products. These companies are Experian, Equifax, and Transunion. Whenever you have an open account for something like a credit card, an auto loan, or a mortgage, the bank reports the status of these accounts to the credit reporting bureaus. Each month, the bank will tell Experian or one of the other companies if you’ve ever missed a payment.
A single payment that is more than thirty days late can completely decimate your credit score. If you neglect to pay a debt, it may end up in collections, which could be the reason that Credence keeps calling you. You might also get collections agencies like Caine and Weiner offering “Pay for Delete” to improve your score.
Self Credit Builder Is an Expensive Way to Build Credit
Companies such as Self Credit Builder promise to help improve your credit score by giving you a loan and then reporting the status of that loan to the credit bureaus. In theory, this works and would improve your credit score.
However, all the company is doing is taking out an interest-paying loan in your name, depositing it, and then demanding you make payments toward that loan. Once the loan is repaid, you have access to all the money you paid into the account, minus about 15% in fees.
You can think of it as having a credit card, but instead of buying a TV and getting to use it while you pay off your credit card, you have an expensive loan that is essentially a savings account that takes money away at the end.
Better Ways to Build Credit
An excellent way to both get rid of inaccurate and damaging information on your credit report and improve your score is by working with a legitimate credit repair company such as The Phenix Group.
Credit repair is a process by which you can have inaccurate collections and late payments on your credit report removed, and The Phenix Group will work on your behalf by sending certified letters and communicating between banks, collections agencies, and credit bureaus.
Furthermore, we can help by advising you on best practices for your credit report and score. They can also teach you how to improve your credit usage so that you can work toward improving your overall credit score and profile.
The First Step to Improving Credit
Self Credit Builder is one of the ways you can improve your credit, but it’s far from the most efficient. Credit repair, on the other hand, comes at a cost that pays for itself. When you consider that having a 1% lower interest rate on a thirty-year $300,000 mortgage can save you over $50,000 over the life of the loan, the cost of credit repair is a bargain. Give The Phenix Group a call today and we’ll get started on helping you maximize your credit score.