Just What Is Credit Restoration and What Does It Mean For Me
For a no credit situation the banks and credit unions want to see some sort of payment and credit history
Getting a secured credit card from your bank or credit union can be a great way to build up your credit
There is a credit score that is put out by the three main credit reporting agencies
Your credit score can range from 300 on the low end to 850 on the high end
If your credit score is lower than 700 then you are not getting the best interest rates when you obtain a loan
You should look at your credit history report at least once each year
Credit restoration will help you find things that are derogatory on your credit history so you can remove them
You may be paying 20%, 30%, or more on a car loan if you have a low credit score
If you have a good credit score, you can obtain low interest or even no interest car loans
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Here is the transcription from Episode 1 What Is Credit Restoration;
Jesse: Everyone, Jesse here, with Tim Dolan of the getmecredit.org, and today we’re gonna be talking about what is credit restoration?
Tim: Credit restoration is, it’s a term a lot of people use and they just, some people just throw it out there, but there are companies that really help you restore your credit, and we’ll talk about that today and cover what is credit restoration? And make sure we can give you a little better understanding. There’s a lot of people out there that have had credit issues their entire life and there’s a lot of people that have just stumbled across some bad times in life and that’s caused them to have some bad credit issues there, too. What credit restoration is, is an effective way to go out and address some of the problems that have come your way and help you restore your credit so that you don’t end up paying higher interest rates on car loans or bank loans or credit cards and things like that. We’ll talk a little about what is credit restoration, and we’ll spend some time here, and give you some ideas on things we can cover.
Jesse: So I assume to worry about credit restoration, first you’ve gotta have poor credit to begin with or no credit to begin with?
Tim: There’s some different scenarios. No credit is some problems if you want to go out and buy a car and stuff, because the banks and credit unions and things, they want to see some history and some payments that have been made. See what kind of a risk there is there. A good thing to do there is maybe go get a secured credit card, that would help you out. Most banks offer that, maybe three, four five hundred dollars just to get you started. That’s a great way for people to start building up their credit.
As far as restoring your credit that would be taking some other steps following some of the laws that were put in, enacted by Congress that we can use to restore our credit. Like the Fair Credit Reporting Act, things like that. Those are a lot of tools that are available to you. People just don’t know how to use them because it’s not a regular, everyday occurrence that you sit down with somebody and go, “Hey, I want to restore my credit. What do I do?” You know? People don’t go around talking about it. You don’t sit in the living room and share your information about your credit with people.
Jesse: Not a usual topic.
Jesse: So if somebody wants to improve their credit, restore their credit, what does that look like, where I’m at? Is that like an actual score?
Tim: Yeah, there’s credit scores put out by the three credit bureau companies. You have Experian. You have TransUnion, and you have Equifax, and those companies look at your credit report history of stuff that, reported from credit card companies, banks, credit unions, and they’ll assign what’s called a credit score, based on the demographics or whatever the stuff’s there for what they’re looking at. It can range anywhere from like 350 up to 830, I think is the range area and stuff. If you’ve got under a 700, even a 650 range you’re not getting the best interest rates that are available to you out there and stuff, and that’s when you should pay some attention to it. It’s good to look at your Credit Bureau Report at least one a year just to make sure that everything that’s on there is your stuff. Because, 50%, 60% of people’s credit reports have stuff on there that’s not even them. There’s some issues there that would cause problems, too, for people. Every three seconds somebody steals an identity in this country, so it could be yours next.
And things like that, credit restoration comes in handy, and it’s just a good way to clean it up. There’s a lot of companies that offer credit repair versus credit restoration and we can talk about that down the road here a little bit. What is credit restoration? That’s just a matter of going into your credit history and finding things that are derogatory that are on there and then accessing the right avenues to request that information be taken off or proved that it is you, that it’s not erroneously reported, causing your credit store to go down. Get your record score in the 700 range? You’re looking at mortgage interest rates that are the best on the market. Car interest rates that are best in the market and without having the ability to do that if you’re in the 550, 600 range, you might pay 22% to 30% for a car loan versus somebody getting the car loan for 0% or 2% or 3%.
Jesse: Wow, so definitely, financially speaking, it’s well worth it to explore that.
Tim: Yeah, it can cost you like in a mortgage if you went out to buy a house. It could cost you three to four hundred thousand dollars just in interest charges over a 30-year mortgage term.
Jesse: Oh, wow.
Tim: It’s a big deal.
Tim: It’s something that people should pay attention to.
Jesse: So obviously, you’re an expert in credit restoration. How do people get a hold of you if they wanted to reach out to you and maybe get some advice in this area?
Tim: Okay, you could go to getmecredit.org, or you can call me at 651-243-2866, and we’ll just do a little chat. That’s free. Doesn’t cost anything.
Tim: I’m there to help you, and we’ll talk about what is credit restoration? And we’ll see what we can do to help you get started on the right track again.
Jesse: Perfect. Thanks.
Tim: Yep, thank you.
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