Credit Repair | Improve Your Credit Score
What Is Credit?
Credit refers to an agreement between a lender and borrower in which the borrower receives something of value and promises to repay the lender at a later date. Say, for example, you head out to a restaurant with your friend and you realize you forgot your wallet. Your friend covers your food and you agree to pay him or her back once you’ve gotten your wallet. That’s credit, minus interest.
Usually, an interest rate is applied to the original cost of the item of value in order to speed up the time it takes the lender to pay back the borrower. Interest tends to come in when you’re looking to buy and pay for a car or other major investment, such as a house.
Credit Repair | Importance of Monitoring Your Credit Score. Get a Higher Credit Score With Our Credit Specialists
Why Get Credit for Your Business?
Now this is all very interesting, but how exactly does it apply to you and your business? There are two types of credit reports: consumer and business.
While they both contain information regarding your credit history, there are differences in the ways you use that data and in the data itself.
For example, a business credit report will include information on the company’s banking, trade, and collection history and risk scores. With this, there’s also the benefit of having a separate credit for your business, which would let you buy now and pay later.
Good Credit Score | Why Is A Good Credit Score Important To Have?
A good credit score is important because it lets the lender know that they can trust you to pay their money back. The higher the credit, the greater the chances you’ll be able to borrow money from lenders and save money through interest rates.
Benefits of Reparing Your Credit
5 Benefits of a Hired Credit Repair Professional/Company
Knowledge: Credit repair professionals are knowledgeable in several areas to help your business reach its maximum potential with a better credit score. They’re there to work alongside you and comply with the rules and regulations laid out in the Fair Credit Reporting Act (FCRA) and the Fair Debt Collections Practices ACT (FDCPA), among others.
Savings: With a high credit score, it becomes much simpler to borrow out loans on mortgages, credit cards, etc., on low interest rates. Higher rates make it much more difficult to pay back the lender, which means you’d end up paying more than the original amount in the long run.
Time: Professionals research laws, contact creditors, and track paperwork, so that you won’t have to. While it’s possible to complete your own credit repair, the amount of time needed to analyze your situation and improve your score may not be available. For such reasons, you’re better off hiring a company to take care of all this for you.