If you’re struggling to keep track of multiple debt payments each month or have high-interest debt that you’d like to refinance at a lower rate, a debt-consolidation loan might be an option for you — even if you have what creditors consider “bad credit.” But your credit may make it difficult to get favorable rates and terms on a debt-consolidation loan.
Once you are trained and certified as a credit repair specialist you will be able to give clients immediate actions to improve their credit (like paying credit cards below 25% usage) and important business know-how such as writing effective dispute letters to credit bureaus. This is an important step that cannot be skipped for a solid foundation in your credit repair business.
The accounts section contains a detailed history of all accounts (open and closed), your balance and your payment history associated with each account. You should be able to see month-by-month payment information for seven years of history. Each month will have a symbol next to it that indicates whether the account was paid as expected or if it was late.
The Credit Pros is a fast-growing company with teams of credit advisors and customer support staff ready to assist you in rebuilding your credit. The company is transparent with its pricing and offers multiple membership levels for custom credit support. The firm has glowing reviews online, and it quickly resolves any complaints from former customers.
Whether you arrange a plan yourself or you use nonprofit debt relief, the plan will be reported to the credit-rating agencies and likely will affect you credit score. Your credit score will drop for the first few months of the debt management plan because you are asked to get rid of all, but one credit card that card can only be used for emergency situations. Your score will go back up soon enough, however, because you will be making on-time payments every month.
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Before you sign on the dotted line, be sure that the costs of the new, bundled loan will truly be less than what you're already paying various creditors. Many consolidation-loan candidates will find their current credit woes mean they won't get the lowest-available interest rate. Plus, when there is nothing to secure the loan (such as your home), expect the lender to bump up the rate.
Cash advance fee. Using your credit card to get cash is expensive. You'll usually pay an upfront fee, the interest rate for cash advances is often higher than for purchases, and in many cases, grace periods don't apply to cash advances, so you start paying interest on them immediately. A few cards don't charge a fee for cash advances. Some cards don't allow advances at all.
A good credit repair company first pulls your credit reports from each of the three major credit bureaus in order to pinpoint your credit issues. Why all three? Because each credit reporting agency has its own “data furnishers” (aka lenders, credit card companies, debt collectors, etc.), that report your credit information to them. And there may be errors that appear on one of your credit reports, but don’t appear on the others
Fixed interest. Credit cards very often have a variable interest rate, meaning that as the prime rate fluctuates, so will your rate. With a debt consolidation loan, you can lock in your interest rate. This is critical because it means your monthly payment will remain the same (assuming you don’t accrue any late charges) which allows you to easily budget for it.
People who come to our website in search of good credit repair companies are not being “hotswapped.” However, the allegations of duplicitous marketing practices may trouble many consumers who haven’t been directly affected by them—and may reasonably lead some consumers to doubt the integrity of other parts of Lexington Law’s and CreditRepair.com’s operations.
Try to manage your debt yourself. Even without the help of a credit agency, you can make a household budget, reduce unnecessary expenses, and prioritize your debts. You can also call your creditors to request them to waive late fees, reduce interest rates, and/or work with you on a payment schedule. You can also ask about debt re-aging, also known as rollback or curing. This process can report past-due accounts as current, which can help you avoid delinquent status. Many times creditors will be happy to work with you if you make a good-faith effort to pay them.
Sometimes we mishandle our budget, and we spend more than we should. (You know that you shouldn’t have bought that expensive flat screen TV). And, sometimes we end up in tough financial situations because of things beyond our control. Whether you have experienced job loss, illness, or another type of financial disruption, it’s important to know that you can turn things around.
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Step 1: Tell the credit reporting company, in writing, what information you think is inaccurate. Use our sample letter to help write your own. Include copies (NOT originals) of any documents that support your position. In addition to including your complete name and address, your letter should identify each item in your report that you dispute; state the facts and the reasons you dispute the information, and ask that it be removed or corrected. You may want to enclose a copy of your report, and circle the items in question. Send your letter by certified mail, “return receipt requested,” so you can document that the credit reporting company got it. Keep copies of your dispute letter and enclosures.
Before you begin. Make sure you have a copy of each of your credit reports in hand, as you want to dispute all of the negative items on that report, within reason. Keeping your reports nearby helps you specifically reference them in your dispute. As you’ll soon see, the key to writing an effective dispute letter is specificity and attention to detail.
VantageScore®, another credit scoring model which was developed by the three main credit bureaus (Experian, TransUnion and Equifax), also uses a scale ranging from 300 to 850. But its definitions associated with each score range vary slightly. A VantageScore from 601 to 660 is considered fair, from 500 to 600 is poor, and from 300 to 499 is very poor. See the table below for a full breakdown.
Home equity loans can be risky as a method of debt consolidation if you don’t have the discipline to use the money for its intended purpose and pay down the loan on time. For starters, you could lose your home if you fail to repay the loan because you’re using it as collateral to consolidate debt that’s now unsecured. A HELOC comes with variable interest rates -- and that can add up if rates fluctuate over time.