When does your Credit Score need to be repaired?
When is the right time to hire a Credit Repair Company?
Well, today, I'm going to answer these questions and more!
It's estimated that 25% of Americans don't know their Credit Score or even how it's calculated. But if you're one of those people, don't be embarrassed. The credit system is extremely confusing – by design – and most of us were never taught how it works or its impact on our lives.
So, today I'm gonna level the playing field and answer two of Google's most frequently asked credit questions: "When do you need Credit Repair" and "When should you hire a Credit Repair Company?"
HOW THIS RELATES TO US
For those new to Credit Repair, the first step to long-term financial health is knowing your Credit Score and understanding how you got that score.
If you don't know your Credit Score or have never reviewed your Credit Reports, you can get a free copy of your report from each of the three major Credit Bureaus once a year at AnnualCreditReport.com.
That being said, the credit reports they provide for free do not include scores. So if you want your Credit Reports plus scores from all 3 bureaus, you can get all 3 for $1 instantly when you sign up for a 7-day trial of Credit Hero Score at CreditHeroScore.com.
In most cases, people seek out Credit Repair because a low Credit Score is preventing them from qualifying for a car loan or home loan.
The problem with having a low Credit Score is that it's both the result of financial difficulties and the cause of more. They can hurt your financial standing for years or even decades. They can make it challenging to be approved for loans, credit cards, or even jobs.
Credit Scores can drop for countless reasons, including using too much credit or not enough, missed payments, fraud, or Credit Bureau errors.
It's important to remember that 79% of Credit Reports contain errors that can hurt Credit Scores. Those errors can range from incorrect personal information to inaccurate reporting of debts and credit histories.
However, no matter the cause of the low Credit Score, it must be repaired as soon as possible. But what does "repaired" mean?
THE THING TO REMEMBER
When it comes to Credit Scores, higher is always better, but there's not one universally agreed-upon score that everyone should be targeting. Everyone has different financial circumstances and different financial goals.
Whether you're repairing your credit, hiring a Credit Repair Company, or you're a Credit Repair Professional, you need to understand the relationship between a person's Credit Score and their financial goals.
For example, this question was recently asked in the CRC Facebook Community: "If a client starts with a Credit Score of 480, what score do you stop fixing their credit?"
Well, that depends on the client's larger financial goal.
If they were denied something like a home loan, they would need to raise their 480 to at least the mid-600s to get approved.
However, a Credit Score of 740 could help them to pay a lower initial down payment on the house. And a score of 760 would likely qualify them for the best rates from lenders and save them thousands in long-term interest.
As I said, this is a confusing system, and as you can see, it's somewhat subjective. But according to FICO representatives and scoring models, any score under 580 is classified as "POOR" or extremely risky, and they will be treated unfavorably by lenders. And anyone with a score in the 800s will be considered "a sparkling applicant" by lenders.
So, Step 1: Learn your Credit Score.
Step 2: Determined a target score based on the goal associated with it.
Step 3: Decide if you're repairing your credit yourself or hiring a Credit Repair Company.
WHY THIS IS IMPORTANT
Credit Repair can be done by yourself, just like you can fix your car, cook your food, and do your taxes. It requires time and dedication, but you'll have better credit and a valuable new skillset at the end of the process.
In fact, most of our Millionaires Club members started by repairing their credit first. Then they decided to help their friends and family do the same, and eventually, they turned their new skills into a profitable business.
If you don't have the time or dedication to do it yourself, call a professional. Your Credit Score is too important to wait until you're ready to fix it. The lower your Credit Score gets, the higher you need to prioritize repair.
So, how do you choose a Credit Repair Company?
WHAT YOU NEED TO KNOW
Hiring a Credit Repair Company might seem intimidating, but it's simple. There are 5 Things to Consider When Hiring a Credit Repair Company.
CREDENTIALS: A reputable Credit Repair Company will provide state licenses, industry certifications, and other completed training verification to prove they have the knowledge and skills to provide quality service.
REVIEWS & TESTIMONIALS: A transparent Credit Repair Company should have reviews and testimonials on several sites (Facebook, Google, etc.). Collect a mix from different sources to get a general picture of their quality of service, but don't weigh one review too high over the bunch. If you've ever visited Yelp, you know some reviewers are crazy.
FEES: Different Credit Repair Companies charge fees in different ways. So review the specific services you're paying for and the fee structure before you sign anything. Make sure to get the most bang for your buck.
EXPECTATIONS: A Credit Repair Company's job is to dispute and remove inaccurate or outdated information from Credit Reports. A reputable Company will establish clear expectations early. They'll explain your personal dispute strategy and set realistic timelines to reach goals.
Be cautious of Credit Repair Companies who promise unbelievable results overnight. At best, it's magic beans.
COMMUNICATION: A Credit Repair Company might have a few clients or a few thousand. Either way, customer service is key. Credit Repair can take months or years, depending on the circumstances. Make sure the company has a communication style you're comfortable with, whether it's weekly email updates, monthly in-person meetings, etc.
If the company checks all these boxes, it's time to hire them.
You will need to fill out an application and explain your credit history. The company will review your Credit Report, identify the items that can be disputed, and file disputes on your behalf.
The Credit Bureaus will investigate those disputes, respond based on the circumstances, and remove any inaccurate or outdated items from your Credit Report. Then you can just sit back and watch your Score improve!
Okay, I covered what customers look for in a Credit Repair Professional.
Now, for a quick bonus, I want to let Professionals know what they should look for in potential Credit Repair customers.
3 Things Credit Repair Professionals Need to Know about Customers
GOALS: Each Credit Repair customer has a different goal. Take the time to learn their goals and create a personalized plan to help them achieve them. It will make them better, active partners in their Credit Repair process.
COMMUNICATION: Communication is a two-way street. Every customer wants to be treated like a priority. So, keep them informed with updates or changes to their plan and be open to answering questions or concerns.
EXPECTATIONS: If a customer thinks you can boost a score 400 points in 1 day because they saw it on TikTok, you need to reset their expectations, establish new ones, or wish them well because you can't help them.
MY FINAL POINT
You play an essential role in your Credit Repair process, whether you do it yourself or hire a professional. So, keep an eye on your Credit Scores, and if you see a drop, choose a path, and act quickly!
I'LL END BY SAYING...
If you still need a Credit Repair Cloud account, check it out. It's the software that most Credit Repair businesses in America run on. Sign up here for a Free Trial!
And if you'd like to change lives and grow your very own Credit Repair business, check out our Credit Hero Challenge!
It's an amazing program, and we've got another challenge starting in a few days, so grab your spot right now at CreditHeroChallenge.com!
So take care, Credit Hero!
Keep Changing Lives!