Five Signs You Need Credit Repair


Credit is the key that unlocks doors to educational funding, life’s milestones (i.e., buying a house) and even securing a good job. Put simply, you can’t afford to ignore it. If you are a credit newbie, you may be wondering if credit repair is the next step. While every person has a different path, there are a few telltale signs that your scores could use some work, including:

  1. You carry a credit card balance. What began as a few innocent charges has now ballooned into full-blown debt. Paying it off isn’t an option, either. You tend to make minimum payments and avoid looking directly at the overall balance. It’s easy to get stuck in this financial trap, and credit damage is a given as your credit utilization ratio rises. Review the Five Factors of credit scoring to get a full picture of how long-term consumer debt can hurt your score.
  2. You were denied for a loan. Many people realize the state of the credit score after being denied for a loan or new line of consumer credit. Each lender has their own requirements for creditworthiness and inclusion, and while one company may approve you over another, any denial is cause for concern. 
  3. You forget to pay your bills. Forgetting the occasional bill isn’t likely to hurt your credit score, but multiple infractions can add up over time, costing you 150 points or more. The severity of damage increases the longer you wait to meet your responsibilities. For example, a 60-day late payment is more worrisome than a 30-day late payment. Without proper attention, the consequences of forgetfulness could remain on your credit report for years. 
  4. You don’t know your credit scores. Your credit scores wield significant power over your life, and yet, the majority of Americans avoid the facts. A recent survey revealed that only 42 percent of consumers know their credit scores. The “out of sight, out of mind” mantra isn’t sustainable when it comes to credit health. Keeping track of your scores is essential to the process of repair and maintenance. 
  5. You have no credit history. You may be wondering, How can I repair something that doesn’t exist? As an unscorable consumer, you may not have enough credit history to qualify for new loans, low interest rates and all the benefits of strong credit. A credit repair advocate can help you begin your credit journey by offering financial management tools and credit score insight.

The need for credit repair isn’t an entirely negative realization. In fact, the prospect education and advocacy is exciting. Consider the benefits that come with a service level that provides:

  • Creditor interventions
  • Credit score analysis
  • Constant credit report monitoring and damage maintenance
  • Identity theft alerts
  • Access to monthly FICO® Scores
  • Financial management tools
  • Legal interventions for abusive third-party debt collectors

The bottom line: Credit repair doesn’t occur overnight, but it is possible with the right tools and support. Invest in long-term stability by focusing on credit repair now.