The cost of bad credit can be very expensive. It can lead to higher interest rates on loans, higher insurance premiums, difficulty getting approved for housing, and difficulty getting approved for employment. The cost of bad credit can range from hundreds to thousands of dollars depending on the severity of the credit situation. The fastest way to build good credit is to make on-time payments, keep balances low on credit cards, and pay off any delinquent debts. Additionally, applying for a credit card and using it responsibly can help build your credit score.
What if my Balances are too high?
It sometimes just seems impossible to overcome those high debt credit cards. Some have trouble making the monthly minimum payments. But there is a good method for overcoming and taming these credit card debts with the “Snowball Method!” The debt snowball is a method of debt repayment that involves paying off the smallest debts first and then working your way up to the larger debts. The idea is that by paying off smaller debts quickly you can build momentum and motivation to tackle larger debts. Just use the money that you were paying (to the now paid off card) and apply that to the next card to target. It is important to remember that while the debt snowball can be an effective way to pay off debt, it may not save you the most money in interest fees or the fastest way to get out of debt.
What if my balances are good and the Derogatory information is keeping my score low.
Inaccuracies on credit reports can be a very frustrating problem. There is no one-size-fits-all solution for correcting inaccuracies on credit reports, but the first step is to review all of the information on your credit report and dispute any incorrect information. You should contact the credit bureaus to dispute any incorrect information and provide documentation to support your claim. If the credit bureaus are unable to verify the accuracy of the disputed information, they must delete it from your credit report. Additionally, you can consider filing a complaint with the Consumer Financial Protection Bureau if your dispute is not resolved. We help clients every single day with these inaccuracies. If a DIY credit repair doesn’t appeal to you, seek out help from a professional.
Ok, I’ve disputed, I know the account is inaccurate, but the bureaus won’t remove the information!!
If an account is, in fact, reporting incorrectly… that is a violation of the law. You can file a complaint with the Consumer Financial Protection Bureau if you feel that a creditor has violated the Fair Credit Reporting Act or the Fair Debt Collection Practices Act. Additionally, you may be able to file a lawsuit against a creditor if they have violated other consumer protection laws. We have Attorney’s on staff that sue debt collectors and the 3 credit bureaus each and every day. Listen… mistakes happen. If they aren’t corrected in a timely manner, there are ways to sue for damages.
If you feel that you could use the advice of professionals in the field of credit repair, reach out to us. We can give you a consultation to see how we may be able to help and what you could do on your own to improve your credit scores. Because the cost for bad credit is indeed expensive. Why wait? 1-800-994-3070
