December 04, 2018
Are You a Good Candidate for Credit Repair?
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If your current credit score is less than 270, then you may need credit repair. Why?
A 720 score is considered the sweet spot for getting the best interest rates possible for purchasing any big-ticket items, such as a car, home, furniture, major appliances and so on. And, for getting the best interest rates for your credit cards.
Nearly 80% of all credit reports have some type of error included so it’s imperative that you review your credit reports monthly so you can determine any discrepancies that you can dispute.
But, if you are not financially able to pay all of your bills on time, then it is imperative that you establish and STICK TO a budget. You need to pay your bills ON TIME for at least 3–6 months. In addition to setting up a budget, you can write debt settlement or payment reduction letters to your creditors
For example, if you have had a good history of paying your bills, but you or your spouse have recently suffered a job layoff, you can contact your creditors and ask them to reduce the current required monthly payment.
The letter should include a statement of the reason you are unable to make the current payment amount. Indicate the amount you are able to pay, starting with on a specific date. For example, if you are making a $400 car payment and you can now only make a $300 payment, starting on 1/1/2019, then indicate this to the creditor.
Be sure to include when you expect to resume making full monthly payments, say in 6 months. In the example above, that would be starting 7/1/2019. Let them know you are fine with having them add the unpaid amount to the end of the
Remember, the worst thing you can do is not
But, most importantly, set a budget and stick to it! The most important factor that affects your credit score is based on payment history…35% in fact. So, if you are consistently late, or not making any payments at all, it will have a significant negative impact on your credit scores. Additionally, your new potential employer will pull your current credit report and if it is showing late payments and lower scores, it could cost you the new job!
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