What Is Considered Bad Credit?
Bad credit is usually depicted as a credit score of 619 or lower. Now, I know we all go through tough times at one time or another, but the long term inability to keep up with credit obligations, typically results in bad credit. Having a poor credit score can negatively affect many aspects of your life. For example, many people think you need good credit just to buy a house or a new car. WRONG! Say you are renting a condo and you need to open a new utility account in your name. The utility company will first check your credit score and may deny you if you have bad credit. In addition, some places of employment also require you to have good credit in order to work for that specific company. Similarly, if you apply for a new credit card or mortgage, the bank will check your credit report to decide whether you should be given a new line of credit or not. Having good credit on the other hand, can help in many ways. You will you save money on loans, home insurance, credit cards, and possibly your employment.
How Do I Know If I Have Bad Credit?
Before you start looking for restoration companies such as United Credit Advisors, know where you stand. Start by signing up for a credit monitoring service. The monitoring services can provide a baseline of how many accounts you have, your current scores for all 3 bureaus, any accounts that are being negatively reported, and you can also verify that the accounts that are being reported on your report, actually belong to you. Once you have pulled your report, verify that you have scores from the 3 major bureaus. (Transunion, Experian, and Equifax)
I Have Bad Credit. Now What?
Now that you have determined that your scores are on the lower end of the credit spectrum, call your local credit restoration company. Note: Please research the companies before you visit. Make sure they have a good BBB rating, they have good reviews online, and they are successful. Once you have found a reputable company, thoroughly review and dispute errors with your trusted credit advisor and start the credit restoration service.
During the Restoration Process:
- Do not apply for any new score credit cards. (We do suggest, however, finding and applying for a secured credit card. Secured Cards will actually boost your score if done correctly.)
- Going forward, budget your money so that you can pay all new bills on time.
- Speak to your counselor and find out what bills they recommend trying to pay down.
PRO TIP: ALWAYS make sure that if you do pay a past due bill; make sure you have IN WRITING that the company must remove the negative account from your credit report.
What Information is Necessary for Credit Repair?
You will need to supply the following types of information for your credit restoration:
- Proof of Identity ( Form of ID with correct mailing information), Proof of Social Security Number (Social Security Card or W2 from the most recent year), Proof of Address ( Utility Bill, Voter’s Registration, or Voided Check ect)
- Past due accounts that have been sent to collections
- Incorrect information, such as incorrect name, incorrect reporting of payments, payments that have been reported late, and accounts that are not yours, etc.
Sending Your Dispute
Your credit restoration company will help you with this step but should you be doing the restoration yourself, you need to highlight all incorrect items in the credit report. Send a copy of the information and request proof of the original debt. Remember, by law, the credit bureaus must research your request and will decide if the information is inaccurate or not and will send you a response via mail.
On Another Note: I Want To Start A New Business Do I Still Need To Repair My Credit?
If you dream of starting your own business for which you need to borrow money from a bank, you should absolutely consider repairing your credit score before applying for the business loan.
How Can United Financial Counselors Help You?
Credit repair can be a confusing and time consuming process. Many people seek professional and expert help in order to help them to repair their bad credit. At United Counselors and United Credit Advisors, we offer credit restoration, budgeting assistance, and other professional financial services. To contact us, please visit www.unitedcounselors.org or call us at 877-509-3160 for more information. Let us help you improve your credit score and live a debt free life!
For more information about credit repair: please read