With the amount of debt continuing to rise across the country, consumers have experienced a heavier reliance on a review of their credit file in recent years. There is a greater emphasis being placed on how well an individual has maintained his or her credit report, with lenders focused on the presence of black marks more so than the length of an individual’s history or the total amounts due. Individuals who have less than perfect credit files due to late or missed payments, outstanding defaults or recent bankruptcies may find it more difficult to obtain new credit accounts, even if they have the income to fulfill the new obligation.
However, creditors are more apt to offer financing to individuals who have a strong credit report that highlights their longstanding history of on-time payments and strong relationships with other lenders. The majority of lenders are also more willing to provide financing that is affordable to borrowers based on the lack of black marks in their credit report. For instance, a creditor may be able to offer a new credit card account to a borrower with exemplary credit with a 9% interest rate and no annual maintenance fee. For an individual with a poor credit history, the same lender may only be willing to offer the card with an interest rate of 22% on top of an annual maintenance fee or application charge. This can make a world of difference when it comes to repayment over time.
Time to clean your credit report
If you have a poor credit history or a less than ideal credit report, there are credit repair companies ready and willing to help. These organizations understand the way lenders perceive risk when it comes to credit accounts, and are able to help you repair your credit file in a professional and affordable way. Items like defaults or court actions that were wrongly placed on a credit file can be removed with the expert help of credit repair companies. Reputable credit repair companies work to remove the black marks that appear on a credit report so that lenders will see the individual as less of a risk, resulting in better credit offers in the future.
Lenders are generally pleased to work with credit repair companies when it comes to removing erroneous black marks. There is a specific process that credit providers must go through in order to place a default or court action on your credit report, and lenders are often glad to be informed when this process has not been done correctly. Credit companies are quick to work with repair organizations in order to remove incorrect or outdated information, more than they may be in working directly with an individual debtor. If you have uncovered black marks in your credit file that do not belong, consider hiring a credit repair company to help you through the process.