You probably already know that bad credit can hurt your chances of qualifying for a loan, and make you pay higher interest rates, but did you know that bad credit can also prevent you from renting an apartment, landing a job, and even make you pay more for insurance?

In addition to these problems – bad credit can be embarrassing, and cause you a lot of unnecessary stress and headaches.

On the other hand, good credit can help you get lower interest rates, get approved for a home or car loan, and help you pay lower premiums for insurance. Having good credit also makes you feel more confident – knowing that you can handle any financial surprises that come your way.

Consumer Credit Repair is devoted to helping you improve your credit score. We have the tools, information, and recommendations to help you repair your credit, and get your finances in order.

Good Credit is as Easy as 1-2-3

1. If this is your first time here, we recommend checking out the Credit 101 section. This will help you understand how credit works, and how to get a good credit score. You can also call us at 800-406-1960 and talk to one of our credit repair specialists. They’ll walk you through the credit repair process, and provide you with some solutions for fixing your credit.
2. Once you have a basic understanding of your credit, it’s time to order a copy of your credit report. Our Credit Report section will show you how to order a copy of your credit report, and how to understand what’s on your credit report.
3. When you’re ready to take action and fix your credit, we recommend visiting the Credit Repair section. Here you’ll find great tips and suggestions for improving your credit score. You can also talk to one of our credit repair experts to discuss your credit repair problems. Just call us at 800-406-1960 to find out how we can help you remove negative items from your credit report.

Thanks for visiting Consumer Credit Repair. We look forward to helping you understand, and resolve your credit problems.

It used to be that no one but creditors (or potential creditors) had access to your credit file. Therefore if you had bad credit, it was fairly easy to prevent anyone from seeing it, simply by avoiding applying for new credit.  Most people I talk to with bad credit typically apply for credit cards over the Internet, so they wouldn’t have to face the embarrassment with an actual person.

There are websites creeping up everywhere that allow people to buy your “Personal Profile.” This can include information such as previous bankruptcies, foreclosures, current home ownership, and an overall credit grade. While it’s illegal for anyone to pull your score without your consent, these profiles can show a credit grade varying from “Excellent” to “Poor”, which basically tells everyone whether or not you have good credit. Gone are the days where you can go about your business privately; even your potential employers check your credit now. Which is why it’s more important than ever to have good credit. It’s time to stop being embarrassed and take some action.  Here are five easy steps you can take to begin fixing your credit today:

1) Order a Credit Report

Knowledge is power. First and foremost you need to order your credit report. There are plenty of websites that offer this service, however, you are able to get a free credit report each year from www.annualcreditreport.com.

2) Fix The Errors

Once you have your report, look over each item carefully, and dispute any errors immediately. Once you dispute an item, the creditor has 30 days to prove the item is valid, and if they fail to do so, it will be removed. Although the different credit agencies (Experian, Exquifax, and Transunion) have made it easy to dispute items, it can get overwhelming if you have a lot of errors. Fortunately, there are companies who are legitimate as well as experienced to take on this task for you.

3) Pay Your Bills On Time

This is the number one way to increase your credit score.  Your payment history makes up 35% of your total score. One late payment can drop your score as much as 100 points and stay on your credit for seven years. If you have missed payments, get current right away.

4) Reduce Credit Card Debt

I know, if it was just that easy, you would’ve done it already. However, your amount of debt compared to your credit limit makes up for 15% of your credit score (called “Credit Utilization Ratio”). If you can keep your balance less than 50% of your credit limit, it will make a difference in your overall score.

5) Don’t Apply For New Credit

If you already have a low credit score, you won’t get a very good interest rate on any new credit you apply for, so it will just get you further into debt. Plus, every time you apply for new credit, your credit report will show it as an “Inquiry” and your score will take a hit.

Did you know that most insurance companies check your credit when considering you for car insurance?  That’s because statistics show that people with bad credit file 40% more claims than people with good credit.

It’s frustrating being denied or forced to pay higher premiums simply because you have bad credit.  It’s especially frustrating when you have a good driving record and you are being judged based on your financial past.

It may seem unfair that insurance companies can pull your credit without your permission; however, The Federal Fair Credit Reporting Act allows it under a provision called “Reasonable Procedures”.

Also, the insurance companies don’t use the FICO score that lenders typically use. They use an “Insurance Credit Score”, which predicts the odds that a customer will have a higher than anticipated loss.  In short, the formula for this score is just as confusing as that for the FICO score. The best thing to do is to forget about the score entirely. Just make sure actual information on your credit report is correct.  If you find mistakes on your credit report, let your insurer know you are disputing the information and ask if they will access it again once the information has been corrected.

In addition to cleaning up your credit report, here are a few tips in getting the best insurance rate:

1)    Shop around. Not all insurance companies have the same standards. Get online and on the phone and make sure you are getting multiple quotes so you can choose the best one for your situation.

2)    Consider the kind of car you are driving. High profile and expensive cars might make you look cool, but probably not worth the hit in your pocket.  Instead, go for a low-profile car with a lot of safety features. Nothing says sexy like anti-lock breaks.

3)    Most financial experts will warn you about “putting all your eggs in one basket”, however in this case, putting all of your insurance needs with one company can give you a multi-line or multi-car discount.

4)    Having a higher deductible will always lower your monthly premiums. However, you need to check with your lien-holder to see what deductable they require.

5)    If you have a good driving record, you may be eligible for a good driver discount. So keep the speeding down to a minimum, which shouldn’t be too hard if you’ve opted for the safe car, rather than the sports car.

6)    Paying your premium in monthly installments will incur “fractional premium fees” (usually fairly nominal around $3.50 per month). So if you can afford to pay your premium all at once, you won’t waste money on these fees.

Insurance is a necessary evil, so don’t let bad credit or a lack of research cost you money.