When Your Credit Needs Repair – 3 Important Questions

When Your Credit Needs Repair

When You Need Credit Repair

Often, people only think about their credit when they need it. The problem is, if you have bad credit, it’s already too late. Credit repair is a process that takes time. There’s no magical instant fix. This means it’s always best to work on your credit before you need it. It is very easy to view your credit score online, which means credit information is more accessible than ever. If you haven’t looked up your credit score, this is a great place to start. With a low credit score, it may be obvious that you need to work on your credit. If your score is average, though, it may be harder to determine. The essence of credit repair is finding what is wrong and what you can do to fix it. Here are a few questions to ask yourself.

Am I planning a major purchase?

Your credit comes into play most obviously when it comes to big purchases like a car or house. Most people don’t have cash in hand for these purchases, so they need to get a loan. While banks are in the business of giving loans, they can’t afford to give them to just anyone. This is where credit comes into play. By assessing your past behavior with borrowing money, the bank determines whether they will loan to you, how much they can loan, and at what interest rate. Before planning any big purchase, you always want to check on your credit score.

Do I have any new loans or credit cards?

Every time a lender checks your credit, it can affect your score. This is called a credit inquiry. It shows lenders that you are actively searching for a loan or line of credit. If, for instance, they find that you’ve applied and been rejected for several loans in the last year, they might be hesitant to loan to you. There are two types of credit inquiries, a hard inquiry, and a soft inquiry. As the name suggests, one is more extensive than the other and impacts your score more heavily.

A soft inquiry doesn’t affect your credit score much, but hard inquiries can. If you are planning on purchasing a car or home, you don’t want to be running multiple inquires on your credit leading up to the purchase. This will make lenders a lot more cautious about giving you a loan. If you need credit repair, this makes the process even harder.

How much time do I have for credit repair?

Make sure you give yourself enough time to work on your credit. It is not a fast process as it is built on historical data. Your timeline can help you determine how aggressively you need to work on credit repair. If you have a lot of time, you don’t have to go crazy all at once. Make sure you are paying your bills on time. If your debt balance is more than 10% of your total available credit, work on paying it down.

This is called your credit ratio. The longer you can maintain a credit to debt ratio of 10:1, the stronger your credit history will become. Be sure to check for any credit that might not be accurate. You do have the option to challenge or dispute any claims on your credit. This, of course, has to be checked and verified. But if a disputed debt is reduced or eliminated, this can have a big impact. It will increase your ratio and improve your credit score.

Getting Help with Credit Repair

Credit repair can become a complicated process, especially if you are working within a fixed timeline. If the simple steps above aren’t getting your there fast enough, or the whole process is just too much, ask for help! Book a credit repair consultation with Shamika Saves to get started. Shamika is a Florida native and proud Army Veteran. She is dedicated to helping clients live their best lives! As a resident of Brevard County for 10 years, Shamika decided to pursue her true passion for helping others improve their financial health. Shamika is a top credit repair specialist expert in personal & business credit. She can not only help fix credit issues but can also help her clients achieve their homeownership dreams! At Shamika Saves, She believes this will be your one-stop-shop for information related to credit building products, credit repair, and finance tips.

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