A lower credit score means paying substantially higher interest rates or getting denied when applying for loans. While genuinely missed payments can only be overcome slowly by continuing to make timely payments, inaccuracies on credit reports are common and have a simple solution. This is where reputable credit repair companies in El Paso, Texas can help.
Who Determines Your Credit Score?
In the United States, there are three different credit reporting bureaus. They are known as Equifax, Experian, and Transunion. Each of them uses a proprietary formula to determine your credit score based on a variety of factors such as if your payments are made on time and how much you owe on your credit card compared to your credit limit.
Even simple things like applying for a loan will show up on your credit report and can affect your score. For many people, the first time they realize they even have a credit score is the first time they are denied a loan.
People can have low credit scores for a variety of reasons, including missed payments, shopping around for too many loans, or using their credit mix poorly. Another possible reason for a low score is inaccurate information appearing on your credit report.
What Is Credit Repair?
Credit repair consists of two primary components:
Removing Inaccurate Information
All it takes is one mistyped keystroke when entering a social security number and suddenly someone else’s bank loan is showing up on your credit report. Now, imagine that they stopped making payments on this loan months ago. Suddenly, your credit report and score have been destroyed, and you’ve been denied a loan.
Situations like this happen all the time, and getting the banks and credit reporting agencies to admit their mistakes and correct them is about as much fun as pulling teeth. Affidavits need to be filed, paperwork needs to be found and verified, and credit reports need to be corrected. This is difficult for many people, especially if it involves complex financial documentation and legalese.
Making Payments on Time, Credit Mixes, and Ratios
The second component of credit repair is making sure that you maintain a healthy overall credit profile. This includes things like making sure you aren’t maxing out your credit cards and are making your payments on time. It might also include paying off debts that have gone to collection. Efforts like these can go a long way toward rebuilding and improving your credit score.
Is Paying Someone Worth It?
The advantage of working with a licensed credit repair company such as The Phenix Group is that they have years of experience dealing with not only the credit reporting companies, but banks as well. Things like understanding what credit score mortgage lenders use and what mix of credit types might improve your score is second nature to these specialists.
They also understand the ins and outs of more complex things like hard inquiry removal services and how to bring your credit score up by lowering your debt to credit ratios.
In Conclusion
At the end of the day, considering that lowering an interest rate by a single point—from 6% to 5%—on a thirty-year, $300,000 loan will save you $60,000 over the life of the loan, credit repair services can be the deal of the century. Check out the resources provided by The Phenix Group for more information!