When your credit is in the lower tier, and you’re desperate for a solution, you’ll most likely come across credit repair companies as an option. Of course, money is so tight, you have to ask yourself if credit repair companies are worth it? Given the amount of money they could save you in the long run, the answer is a definitive yes.
Today, I’ll show you how and why credit repair companies can save you a ton of money in the long run, and ultimately give you back control over your life and your finances.
All The Ways Credit Repair Companies Save You Money
Credit repair companies employ a monthly payment plan that allows you to use them for as long as you need and then cancel without any fees or hassle. During this time, they work to remove items from your report that are dragging your score down for the wrong reasons.
While it may seem like you’re losing more money than you should by paying for these services, let’s look at all the ways credit repair helps you save money in the future:
1. Higher Scores Equal Lower Interest Rates
When you take out a loan of any kind, there’s going to be an interest rate. This is the amount that accrues over time as you pay off the loan. It can vary widely based on your credit score, which is why credit restoration is so important.
If you have a credit score of 740 or higher, you qualify for the best interest rates. If your score is below 620, you may find it very difficult to get approved at all. If you are approved with a lower score, the interest rate will be a lot higher.
As a result, when you look at the total cost you’re paying over the course of the loan, the interest results in you paying thousands of dollars more than you would have if the rate was lower. By repairing your credit before you get the loan, you can save this money through a lower interest rate.
2. Credit Repair Services Work Faster
While you can DIY credit repair, the issue that arises here comes from the fact that, as a single person, you have a lot on your plate. Obtaining your credit reports is simple, but finding opportunities for disputes and properly filing all of the information needed to outline said disputes, is extremely time consuming.
Unless you have experience as a lawyer or paralegal, you may find yourself spending time and money figuring out what is potentially disputable. On the other side of the equation, credit fixers have years or decades of experience in this field.
As a result, they can pinpoint issues much faster and quickly get your score where you want it.
3. Credit Repair Fixes Issues That Take 7-10 Years to go Away
Things like late payments and charge-offs take up to seven years to fall off your credit report. During this time, these things will drag down your score and cause interest rates and payments on your current cards to skyrocket, all of which is costing you money.
Imagine if you could get some of these things removed. Instead of waiting seven years, or in the case of bankruptcy, ten years, you could be rid of them in a month or two! Imagine how incredible that would be.
Final Thoughts
Ask yourself now, is credit repair worth it? You’re most likely thinking that the answer is yes. By helping to lower monthly payments and interest rates through a higher credit score, you can absolutely see a savings in your finances by just going through the process of credit restoration for a few months time.