Category Archives: Credit Cards
Three Tips for Choosing a Reputable Credit Repair Company
Working with a reputable credit repair company can make a significant improvement in your credit report. As they know how the system works, they will be able to remove errors and unwanted items from your report far more quickly than you might be able to manage on your own. As a result, your credit score will rise, and you will have a much easier time in your dealings with banks and credit institutions regarding your loan applications.
To get to that point, though, you will need to pick the right credit repair Miami FL company to assist you. There is, unfortunately, a generally negative perception about credit repair companies, and many people are concerned about getting ripped off and not getting the credit report results they paid for. However, this will not be an issue if you work with a legitimate company.
How do you go about finding the best credit repair companies, though? Well, let’s consider the following three tips for choosing a reputable credit repair company:
Check how long the company has been in business
The credit repair business can be difficult and competitive. If a company has been operating for more than three years, it is an indication that they know the business inside out and have what it takes to survive. Aside from visiting their website and noting their contact details, you should read consumer reviews and check their standing with consumer protection offices. It will also help to check the rating they have received from the Better Business Bureau.
While no company can offer a 100 percent satisfaction to every single customer, you should look for a company that has a higher number of positive reviews and ratings than negative ones. Such a company will be more capable of assisting you with improving your credit report than a brand-new company with little or no experience and which may or may not be around for the long haul.
Find out what Better Business Bureau rating they have
If the Better Business Bureau has given an A rating to a credit repair company, you can be sure that it is a successful company and works in compliance with the Bureau’s established standards. Since the Better Business Bureau give their ratings only after a careful, thorough evaluation of a business, any company with a high rating from them is well worth your while. There will be less likelihood of being cheated or ripped off with them.
Plus, if anything goes wrong, you can file a consumer complaint with the Better Business Bureau, and they will investigate and make sure that you are properly compensated.
Ask about the fees they charge
The fees that credit repair companies charge for the credit improvement work also play an important role in determining if a particular company will suit you. Some credit repair companies charge a flat fee of $500 for repairing your credit report, while others may charge on a per-item basis. While the latter option can seem affordable, you need to have the company clarify exactly what they are charging for.
To give an example, a company might charge you $50 for removing an inaccurate statement in your credit report. However, this fee will be for removing the error from only one credit bureau. You will have to shell out $50 each for removing the error from the other credit bureaus, as well. The company needs to explain this at the start, or you will harbor under the delusion that you are getting the work done cheaply and discover later that you have to pay a triple price.
Your credit score is not something that you can afford to neglect or ignore, given how relevant it is to most of your financial dealings in the world today. If you don’t tackle the errors and false representations in your credit report as soon as possible, you might very well find yourself out in the cold when it comes to getting low-interest car, home, and business loans. You might also face problems with finding employment, getting rentals, opening phone accounts, and more. It is, therefore, crucial that you do your homework and only work with the best credit repair companies.
How Long Will It Take You to Pay Off Credit Card Debt
Are you dealing with high credit card debt? Then you are part of a very large group of Americans. The Federal Reserve reports that as of February 2015, the credit card debt in the United States is more than 3.34 trillion dollars. That means that there is over $10,000 in debt for every person in the United States..
Americans are struggling daily with their credit card debt. It is estimated that each cardholder has approximately $15,000 in credit card debt at an annual percentage rate of 17 percent.
You can pay of your credit card debt if you focus on strategies that will help you manage and pay off your credit card debt quickly.
Pay More than the Amount Due
Do you pay the minimum amount due each month? If you are like most people you are only making the minimum payment due on your accounts and as a result you are going to be paying double your debt or more on the life of the account. Making your minimum payment each month is keeping your account in good standing and protecting your credit score, but the amount of time it will take you to pay off your balance, and the amount you are going to pay over time, will increasing drastically.
Review your credit card statements to verify the current interest rate you are paying. Most credit card issuers will show you how long it will take to pay off the balance if you only pay the minimum each month.
Pay More than the Minimum Due Every Month. It will dramatically lower the length of time required to pay off the balance and it will lower the amount of money that goes to the interest on the account. It may also help your credit score by lowering the credit to debt ratio. The little things do make a difference.
Focus on One Account at a Time
Most Americans have more than one credit card and each card most likely will have different balances and interest rates. There are several ways you can approach reducing the debt across all of your credit cards.
Some people may choose to pay the minimum across all their cards, however, as we discussed this will lengthen the time it takes to pay them off and drastically increase the amount of money you are repaying.
Another strategy is to focus on one credit card at a time. Pick the one with the highest interest rate and focus on paying it off by paying extra each month on that credit card while paying the minimum on the other cards. Once you pay off the highest rate card, you then move to the next card using the same strategy.
You may also consider looking for a credit card with better interest rates or a 0% rate card, which usually offer the 0% rate for a year, so that you can transfer the balance off a higher rate card and pay the debt down with no interest. If you can’t qualify for a balance transfer card, you may want to look into repairing your credit in order to help you qualify for a lower interest rate card.
Debt Consolidation
Consolidating your debt or refinancing your debt is another available strategy to managing your credit card debt (https://en.wikipedia.org/wiki/Credit_card_debt). This option must be carefully examined as you are not paying off the debt but simply moving it to another credit issuer. It will usually allow you to lengthen the term for repayment, which can lower your monthly payments. However, be aware of the interest rates as it may increase the repayment amount you are paying over time.
Solutions for You
Credit used responsibly is a valuable financial tool and can help you achieve your financial goals. Use it carefully and manage it wisely so that it works for you rather than allowing it to over-extend you and increase your debt. Remember, plan a strategy that works for you and create a long-term solution for your financial success.
