How Does Credit Repair in Reno, Nevada Work?
If you have poor credit, it can be challenging to get approved for loans, credit cards, rental homes, or even jobs. As such, you may be considering utilizing the services offered by a credit repair company. However, if you have never used one before, you may have many questions about the services they offer and how they work. Here are a few of the things a credit repair company does to help improve your credit score.
Disputes Information That May Not Be Correct
One of the first things a credit repair company will do is pull your credit report. If you notice a discrepancy, you should dispute it with each one of the credit reporting agencies; Transunion, Equifax and Experian. The credit reporting company will dispute it on your behalf. The discrepancy could be as simple as a closed date on an account or the amount of a revolving credit account has. These discrepancies can make a huge difference when it comes to your credit score.
Finds You the Right Credit Cards to Improve Your Score and Rebuild Your Credit
While it will be difficult for you to obtain a credit card with favorable terms as far as balance, interest rates and annual percentage rates, a credit repair company will look into obtaining a secured credit card for you. Secured credit cards are cards that require you to provide them with a certain amount of money, as a deposit, and in exchange, they give you a credit card. Your deposit will be your credit limit. Typically, if you make payments on time, you get the deposit back in about a year. In the meantime, you are building up positive credit.
Settles Past Debt
During the negotiating process, a repair company may be able to negotiate the removal of the negative account from your report in exchange for collecting money for the debt. While settling your debt with creditors helps reduce the amount of debt you owe, it also shows that you made a good faith effort and have paid some of the money back. This can help to improve your score.
Discusses Credit Options You May Not Have Thought About
Sometimes your credit needs more help than just a bit of repair. Consolidating your debt or filing bankruptcy may be of more assistance to you than credit repair. A credit repair service can help advice you of this.
Having poor credit can limit the things you want to do with your life as so many things revolve around having good credit. However, your credit score is ever changing. A credit repair company can work with you to repair your credit and help you gain control of your financial situation once again.
Benefits Of Having Good Credit
Your Reno credit score is a three digit number that can affect your life in many ways. It is important to have good credit. Below is a list of the many ways that you will be able to benefit from having good credit:
Easier To Get A Loan Or Credit Card in Nevada
Many people are afraid to apply for a loan or credit card because they believe that they will get turned down for having a bad credit score. There are many other factors that lenders take into consideration before they decide to approve you for a loan or credit card, including your total debt and income. However, if you have an excellent credit score, then you will be much more likely to get approved.
Better Interest Rates
You can still get approved for a loan or credit card with a bad credit score. However, chances are, you will probably have to pay higher interest rates. On the other hand, if you have good credit, then you will have better interest rates.
Easier To Get An Apartment
Most landlords today check credit before they rent an apartment to a potential tenant. They want to know that you will be able to make the payments every month. Renting an apartment is easier if you have good credit. Some landlords will approve you for an apartment if you have bad credit. However, you will likely have to pay a higher deposit. You may also be required to get a cosigner.
Easier To Get Job
Many employers check credit before they hire a potential employee. If your potential employer sees bankruptcies or late payments on your credit report, then he or she may be reluctant to hire you. The employer may think that financial problems can make it difficult for you to do your job.
Better Insurance Rates in Reno
Many insurance providers will check your credit. If you have good credit, then you will likely be able to get a better insurance rate. Therefore, having good credit can help you save your money.
No Deposit On Utilities
Many utility providers will check your credit before they turn on your utilities. If your credit score is low, then a security deposit will likely be required. However, if you have good credit, then you may not have to worry about paying a security deposit. This is another way that you will be able to save money if you have good credit.