5 Signs You Need Credit Repair

Bad credit is like a dirty stack of laundry that you keep ignoring. However, “out of sight, out of mind” is not the right mantra to have when it comes to maintaining a good credit report.

The problem can quickly escalate, and you might have debt collectors calling you up and demanding payments before you know it. But just like that bad stack of laundry, the sooner you take corrective measures, the more likely it is that you can avoid future trouble.

Here are 5 signs that indicate you need to get credit repair.

Your Loan Applications Keep Getting Rejected

Lenders assess risk management based on the prospect’s credit score. Having a low score indicates that you’re less likely to return their investments on time. Different lenders may have different standards, but if you keep getting rejected from multiple sources, then it’s time to take corrective measures.

You Forget to Pay the Bills (Consistently)

Forgetting to pay the occasional bill doesn’t hurt, but making it a habit can really hurt your score, knocking off around 150 points or more.

The problem is further compounded when you delay paying the bills beyond their deadline. A 45-day late payment will have far greater negative consequences than a 15-day late payment. Too many people end up underestimating late payments and have the results remain on their credit history for years.

The Debt Collectors Start Calling

Calls from debt collectors are your queue to start taking damage control measures. The validity of the debt doesn’t change the fact that it has negative effects on your score. You can raise a dispute with the debt collector and credit bureaus if you feel that your debts are invalid. If they are, you can negotiate their removal from your credit history. It’s important not to panic when debt collectors starting calling, since it’s not unusual for scammers to take advantage of people’s financial crisis or for collectors to contact the wrong number.

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Card Issuers Are Shutting Down Your Cards

Getting one card closed by the issuers isn’t a serious issue, but when it happens with several cards, then you should take that as a sure-shot sign that your creditworthiness is at risk. Lenders perform routine checks on clients’ credit reports and may shut down an account if they deem the borrower to be too risky.

You Have Trouble Finding a Job

In today’s world, promotions and hiring decisions also take into account the prospect’s credit report. This issue becomes especially pertinent at top executive and financial positions. Although some states forbid companies from checking the credit reports of potential employees, it’s a common practice across most of the U.S. and can be the deciding factor in whether you get accepted or rejected.

The effects of having a bad credit score can even lead to strained personal relationships and difficulty in renting an apartment. TheCreditDocs offer credit repair services in Oakland and help clients find financial stability by improving their credit scores through legal and proven methods. Contact them today.

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