Showing: 1 - 2 of 2 Articles
credit score

Financial Habits That Negatively Affect Credit Score

Having a good credit score is great. It grants you the financial freedom that would not be appreciated normally. Nonetheless, if you have a good credit score, it can be very easy to ruin it. Some spending habits can negatively affect one’s credit score. You must be cautious and develop a healthy financial habit to keep your credit score high and, even better, to improve it.

Luckily, that’s why we have credit repair services. There are many ways you can spend money, which will affect your freedom financially. To prevent this, here is a list of bad financial habits to avoid and things to consider if you want a good credit rating.

Spending More Than You Earn

Some people have the habit of spending more funds than they have and assume they will pay back once they have the money. Let’s say that the payment will be made using their next salary. When that salary comes, they have less than their initial pay, yet still spend more than their salary again.

This is an example of how people accumulate debt, and to get out of it, they have to get into more debt. This never-ending loop is one that has many people facing an endless cycle of debt. It slowly reduces your credit score, and rehabilitating your score becomes challenging. Before you get into a life full of debt, start spending less than you earn. Save at least 10% of your salary every month.

Overusing Your Credit Card

investment potentialOnce you get your credit card, it seems like you have “free” money because you did not earn the funds. People forget that they still have to pay back what they have used. If you use the funds as free money, you will pay for it with your cash. This habit can go on and leave you with debt you cannot pay, and it will reflect very negatively on your credit report. Your credit card is meant for emergencies only.

Paying With Checks

A dangerous habit is paying via check. This is considered bad since one does not know your remaining balance. If you are good at math and always know your bank balance, it might not be bad for you. When using checks, you get to know that you have overspent after receiving your bank statement. Paying with cash can be a little harder and more painful. However, you will find yourself spending less and saving more than scribbling an amount on a piece of paper. This is a habit that you should drop to raise your credit score.

credit

Understanding Credit Repair Companies

If you are new to the borrowing and lending niche, you probably must have come across several mentions of the term “credit repair company.” As a newbie, you might be wondering what it means in relation to lending or borrowing goes. If that’s right, you’ve come to the right place! This post covers credit repair companies broadly by defining them, describing their target clients, and explaining where they can be found. With that said, let’s get started:

What Is a Credit Repair Company?

credits

It’s an entity that focuses on getting inaccurate information that may jeopardize the creditworthiness of the client removed from his or her credit report at a small fee. Just as their name suggests, credit repair companies will “repair” their clients’ credit reports thereby improving the creditworthiness of those clients.

Now, don’t get me wrong, the keyword here is “INACCURATE.” If the information on your credit report is accurate but damaging to your credit score, you will not be able to benefit from a credit repair company.

There are many companies out there that take advantage of this concept to confuse and defraud unsuspecting clients. They achieve that by falsely claiming to help repair and improve clients’ poor credit reports by deleting information that is unfavorable thought accurate. Don’t fall for such a company! If your credit score is bad because you have outstanding debts or don’t pay your bills on time, just settle your debts and on time, if need be.

Who Are the Target Clients and Where Can Credit Repair Companies Be Found?

A credit repair company can have a diverse range of clients from individuals to businesses to institutions with a bad credit score, which is not a result of their fault. The good news is that these companies are readily available to offer their services at a fee. And with the internet being at our disposal, these companies are just a few mouse clicks away.

Final Thoughts

Legitimate credit repair companies really do play a key role in ensuring that consumers can access credit opportunities without being unfairly hindered by their credit reports. These companies are one hundred percent legal and you won’t be committing any crime by reaching out to one. After all, it’s not like you’ll be “faking” your poor credit report. Instead, you’ll just be correcting the errors on your report, which were made by the professionals who created it!