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How Bad Is My Credit? 5 Signs It’s Time to Call a Credit Repair Company

About 30 percent of Americans have bad credit which is defined as having a credit score lower than 601.  What’s worse, many people don’t have any credit score at all.

Having bad credit can make life difficult if, for example, you want to apply for a loan for a home or car.  You may be approved for the loan but with a higher interest rate than someone with good credit would pay.  Or your loan application may be rejected outright.

Most people can take steps to improve their credit themselves.  Others will require the use of a credit repair company in order to boost their credit score sufficiently.

How do you know if you need to hire a credit repair service?  Check out these five signs it’s time to call a credit repair company.

You Can’t Qualify for Rental Housing

The biggest sign you need credit repair help is if landlords do not want to rent to you.  We all need a place to live and if your credit score is preventing you from obtaining rental housing, it’s time to call a credit repair company.

Many landlords will overlook a few late payments.  But if your score is low and you have some major blemishes on your credit report, enlist a professional to clean up your credit.

Your Utilities Are Not in Your Name

Utility companies run your credit before deciding whether or not to provide services for you.  Like housing, you also need utilities such as electricity to live.  If you cannot qualify for utilities, do yourself a favor and get your credit repaired.

You won’t always be able to use someone else’s name to get your utilities turned on. So find out what’s hurting your credit and how to fix it.

Credit Card Companies Are Closing Your Credit

If lenders are closing your credit lines, that’s a bad sign they no longer trust you as a borrower.  This essentially means other lenders will likely find you unattractive as a borrower as well.

Call and ask why your credit line is closed.  Refer to your credit report to see what issues may be hurting your credit.  Often, there are discrepancies and errors which you know to be incorrect.  Correcting these errors is the easiest and fastest way to improve your credit.

The credit bureaus are required by law to provide you with one free credit report per year.  Go over your report with a fine-toothed comb to spot errors and see what issues are hurting your credit score.

You Can’t Qualify for a Credit Card or Loan

The whole point of having credit is to be able to obtain money when you need it, such as with a home loan or credit cards.  If your credit applications are consistently rejected, it’s time to improve your credit.

Lenders are required by law to send you a notice when you are denied credit.  Such notices must provide sufficient reasons why your application was denied.  If the denial is a result of negative information on your credit report, you are entitled to a free credit report.

You Are Getting Contacted by Debt Collection Agencies

You know it’s a bad sign debt collection companies are calling you.  This means you are late on one or more of your accounts.

Maybe you forgot to pay your bill or perhaps it’s a mistake, but it could be killing your credit score.  Multiple late payments can cost you up to 150 points.  Pay off your debts or dispute them if they are not yours.

A professional credit repair service can really help you in this instance.  Just be sure to ask any credit repair professionals the right questions before you sign.

The Bottom Line on Using a Credit Repair Company

Having bad credit can cause you pain financially.  It can also have a detrimental effect on your quality of living if you are rejected for housing or utilities, for example.

You don’t have to suffer needlessly.  Enlist a credit repair company to address your credit and improve your score.  A good company can repair your credit in short order and eliminate significant stress from your life.

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