When it comes to improving your finances, one can easily feel overwhelmed. There is what appears to be a daunting permanence that is often associated with a credit score. However, at Leaf credit repair company, we believe that with the right team to educate and assist you on credit restoration, you’ll be able to navigate your way towards financial success and abundance without the financial boundaries and restrictions of bad credit. That’s why we felt that it was necessary to deep-dive into credit repair and credit repair companies. Allow us to separate fact from fiction. Because to us, there shouldn’t be any misinformation when it comes to something as important as your financial future.
Why is Good Credit So Important?
You can’t escape it or avoid it. Today’s economy runs on credit. Your creditworthiness, which is the key to a healthy, sustainable, and fruitful financial life, is defined by your credit score. This three-digit score can make-or-break various pinnacle milestones in your life such as obtaining a student loan, getting a mortgage, investing in your future, or simply wanting to apply for a credit card Whether you like it or not, many of your opportunities are being influenced or dictated by the mere fact of the matter – great credit equals better opportunities. Thus, to summarize – yes, your credit score is extremely important when seeking financial stability. It is often used as a litmus test to evaluate reliability and responsibility. Many individuals are denied loans due to their credit score, which in reality, may not have even been considered a ‘bad’ score. This is due to the fact that if your score isn’t properly maintained, managed, and regularly improved, it may come across as a ‘risky’ bet to loaners or investors. Neutral doesn’t cut it anymore. Luckily, that’s where we come in.
The Facts About Credit Repair:
When it comes to your finances, transparency is key. Credit Repair Companies can often come across as if they are promising you a pipe dream of financial freedom and a stress-free future. This is all fine and dandy, but what are the facts? You need an action plan. You need a service that’s not only beneficial but realistic. Before trying to improve your credit score yourself or with a credit repair company, here’s what you need to know.
1. Your credit score represents your current standing
Your credit score is an important indication of where you currently stand in terms of your ranking. A low credit score suggests that you have a poor credit history that might need some work. Unfortunately, this isn’t something you can wish away or ignore. However, many individuals fall into the trap of purchasing their credit score every time they want to view it, which can get costly. It’s important to stay vigilant and not fall into the trap of spending more money simply to view your credit score. Most opportunities for financial security, success & status are connected to your credit score, so your credit score mustn’t feel written in stone, or difficult to access. This is why we offer FREE credit consultation here: Schedule a free credit analysis with a certified fico pro and we’ll review your credit report and give you a 7-step plan to fix your credit yourself – or we can do it for you.
2. Your Credit Score Consists of multiple categories
Your credit score is a multifaceted rating that consists of five main categories.
Your payment history (35% of your score).This is an account of all your bills as well as data on whether or not you pay on time.
Credit usage (30% of your score)
This refers to the percentage of credit you use out of your limit. Ideally, you should aim to keep it below 30%.
The diversity of your credit accounts (10% of your score)
There are many different forms of credit. The more diverse your portfolio of credit, the better. Although it shouldn’t come as a surprise that this only stands true if the payments are made on time.
The length of your credit history (15% of your score)
This simply reflects the amount of time that you’ve been using credit and making the payment. Generally, the longer the better as it gives credit bureaus a good understanding of how you manage your business.
Recent credit applications and inquiries (10% of your score)
Your credit score is only affected by what is referred to as ‘hard inquiries’. These negatively impact your score and occur when financial institutions ask to see your report. Soft inquires like when an employer does a background check or if you want to see for yourself, do not influence your score.
These main categories all have various degrees of impact and are carefully calculated, which can make improving it yourself feel tricky and complicated without the necessary information and values of importance.
1. Your credit score is always in your control
Although credit repair is a feasible and recommended step toward improving your financial life, even the best credit repair company cannot take responsibility for ensuring that your credit score stays great if you do not take on the responsibility of adopting healthy financial habits.
A good credit repair company will not only restore your credit but equip you with the needed tools, strategy, and support to keep it great.
If you’re looking for more ways to improve your credit score, be sure to have a look at our article on the Top Five Ways to Build a Credit Score.
Credit Repair Myths:
Many individuals frequently complain that they weren’t aware of certain criteria or misunderstood specific information about their credit score. We’re on YOUR side. This is why we’re committed to not only restoring your credit but equipping you to fully understand and utilize our experience to help you reach your own financial goals. Your credit score should work FOR you, not the other way around. Let’s clear up some of the myths around credit repair.
1. Inquiring about your credit score hurts your credit
As previously mentioned in the article, personal inquiries differ from financial institutions investigating whether or not they should extend a line of credit. A personal inquiry should not influence your score nor should cost a considerable amount. Did you know that consumers are entitled to a free credit report annually from each of the credit-reporting companies (TransUnion, Experian, and Equifax)?
2. It’s hard to improve your credit score
Well, we hate to admit it, but there can be some truth to this myth. However, it all depends on how you are trying to improve it? There is help available that can save you time, effort, and money. With the right team on your side, who implements specific strategies based on your personal goals, budget, and expectations, improving your credit score doesn’t have to be hard.
3. I can’t afford credit repair services
It’s important to remember that when it comes to your financial future, you shouldn’t allow room for doubt or uncertainty. However, it’s easy to push your financial future to the side when you’re trying to improve your current situation. Planning ahead shouldn’t bankrupt you now, and trying to get rid of the strongholds of bad credit shouldn’t break the bank. That’s why, at Leaf Credit Solutions, we pride ourselves on providing the best credit repair services that aren’t only affordable.
At Leaf Credit solutions, we pride ourselves on being there when you need us. If you’ve found this article helpful and you’d like to start your journey towards financial freedom with the best credit repair company in New Jersey, get in touch today and we’ll help you take the next step.