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Credit Repair Companies 7 Aug 2019

Riff, Resolve, Repeat0

Nobody’s perfect, right? That’s the saying. The Dalia Lama however appears perfect. The nun that spends every waking hour trying to solve the homeless problem in her local community also appears to be pretty darn perfect. Then there’s the rest of us, but also some perfect behavior examples littered about. Yet behind all that, even said nun screws up every now and again. And one of the most common screw-ups for folks living in 2019 is overspending and falling into debt.

Nowadays the multitude of tools we have at our fingertips to purchase or finance something is extensive. Be it a car, a new suit, our kid’s education or a trip to Rome, we can find an entity that will loan us the money. The nasty part however is then paying it back.

If you have engaged in said activity (and not always paid back the loan on time), your credit history gets dinged. Pile up enough dings and then trying to get a future loan becomes a bit more difficult. The reason why the developed world’s financial system works so well when it comes to loans is people can be assessed via their credit score. If your score is good that means you are a great candidate for a future loan. If your score is bad, you have not behaved well in terms of repaying your loans and/or debts and financial institutions know this.

If you fall into the latter group then a credit repair company is necessary. Like the phrase sounds, credit repair companies are in the business of repairing your credit. They are expert communicators as it pertains to negotiating with your creditors, which after all is the key to this whole process. You can strike out on your own and attempt a “do it yourself” credit repair, but this takes an extraordinary amount of time and additionally, is tedious and boring. At the end of the day however, some folks simply believe this whole “good credit vs bad credit” doesn’t much matter in the end. Want to bet?

Take for example a new home purchase. A credit score of 770 is considered very good. You’ve found a home and in turn need a loan for $300,000 (mortgage). With a 770 score you might get an interest rate (depending on several factors, this is just an example) of 4.1%. Over the life of the loan that amounts to roughly $220,000 in interest. Now let’s compare this person with a 770 with someone with a 630-credit score. This is considered a “fair” score, and using the same $300,000 loan figure, this person would pay an interest rate in the range of 5.7%. As a riskier borrower the rate goes up and said person would then pay $326,000 in interest over the life of the loan. Get the picture?

Credit repair companies exist for a reason. If your credit is in shambles, or far from perfect, contact one today.   


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