People ask me: “why credit repair”? It happens, that is a very good question. Credit may be the most important, least understood aspect in our lives. Most people don’t know how many ways their credit score impacts their life. Most people think credit scores are only important when making a big purchase like buying a house or car, but your credit score is used for far more things than the obvious. Your Credit score can determine how much you will pay for auto insurance, health insurance, life insurance, what types of jobs you are qualified for, whether you can get a student loan for yourself or your kids, whether or not you can rent an apartment or even a car for a weekend get-a-way. Your credit score determines whether or not you can obtain credit at all and if so, at what interest rate and credit limit. The lower your credit score, the higher the interest rate you will pay and the more you will pay for goods you bought on credit.
Maintaining a high credit score isn’t as easy as paying your bills on time, although that is a big part of it. There are many factors that go into creating a credit score. Payment history is obvious, but some of the other factors are not, such as: how much total debt you have compared to the amount of credit you have, how long you have had credit, how many open accounts you have, how often you apply for new credit, and what type of accounts you have. Negative items, such as late payments, charge-offs, collections, liens, judgments, bankruptcies, and child support are the most common items that will lower your credit score.