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The Difficult Task of Rebuilding Your Credit – and Why it is Worth the Effort

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The Difficult Task of Rebuilding Your Credit - and Why it is Worth the Effort

Your FICO score just may be the most important three-digit number in your life. Your credit score will help determine the interest rate you pay on everything from car loans to home mortgages, or even whether you qualify for a loan at all. The cost of a loan for those with bad credit can be exorbitant, with annual percentage rates exceeding 35%.

If you have damaged your credit, you already know how difficult it is to recover. It takes a disconcertingly short period of time to damage your credit score, but a frightening long period of time to repair the damage that has been done. Moreover, there is a certain amount of psychological trauma that stems from a confluence of excessive debt and constant rejection from lenders. No matter how severe the damage to your credit, there are professional services that can help you recover and start to rebuild your financial life. If necessary, you can work with a credit  to develop a strategy that will get you back in the good graces of potential lenders.

What a Difference a Decade Makes

 

Only a short time ago, it seemed that banks could not give out money fast enough, and the only thing needed to qualify for a loan was a pulse and the ability to sign your name. But now that the credit bubble has burst, the banks have gone in exactly the opposite direction. These days, banks are looking for perfect credit, and if you cannot provide that perfect credit score, you cannot get the loan you need.

Fortunately, there are some techniques you can use to rebuild your credit as quickly and painlessly as possible. While there are no quick fixes for credit problems, there are time-tested techniques you can use to get your credit score back on an even keel. Repairing your credit will not be fast or easy, but it can be done.

The Hype and the Reality

 

You have probably seen all those ads offering painless credit repair, or the ability to walk away from your debts scot-free. You may have suspected that those claims are too good to be true, and you would be right in that assessment. True credit repair takes both time and effort, but the right credit repair and financial counseling firm can help you get your credit back in shape faster than you would have imagined.

Chances are you already recognize the importance of hiring an expert in many aspects of your life. You would not dream of doing your own heart surgery or drawing up your own will, so why would you try to do your own credit repair? Something as important as your financial future deserves the help of an expert, and that is where the help of a professional is so important. A professional credit counselor or credit repair agency can help you minimize the burden posed by your poor credit score, while at the same time helping you rebuild your damaged credit and get back on the road to financial prosperity.

This expert approach is key when it comes to rebuilding your credit, since making the wrong move could end up doing more harm than good. If you fall for the quick fix artists and follow their advice, you could end up reducing, not raising your credit score. That damage could take even more time to undo, and in the meantime you will be stuck paying higher interest rates on everything from your home mortgage to your auto loan. That is money out of your pocket month after month, and it all could have been avoided by simply letting an expert handle your credit repair.

Credit Repair — Expense or True Value?

 

Many people are reluctant to turn to a credit repair agency because they fear it will be too expensive. But far from being expensive, using an expert to help you rebuild your credit can ultimately save you money, both over the short term and in the long run.

Just consider how much money your poor credit is costing you every month. If you have a high interest rate on your mortgage, you may want to refinance but probably can’t until your credit score improves. That means your bad credit could be costing you hundreds of dollars each month.

You could even be paying more on your car insurance than you need to thanks to your poor credit score. Many car insurance companies consider your credit score when setting rates, so failing to get the credit repair services you need could even cost you more when you go to insure your car.

No matter what the reason for your bad credit, the right credit repair services can help you recover and give you a new lease on life. Whether your credit has been damaged as a result of circumstances beyond your control or your own youthful indiscretions, there are steps you can take to take back control and move your FICO score in an upward direction.

Photo courtesy of: CafeCredit.com

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Kayla is a mid-20s single girl living in the Midwest, USA. She is focused on paying off her consumer and student loans, while simplifying her life and closet. You can join her on her journey at ShoeaholicNoMore.com or follow her on Twitter @shoeaholicnomor.

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