What can a poor credit score do for you?

A good credit record will help you to get your credit application assessed by lenders.

If your credit score is less than 630, lenders will not continue with your application. But if your score checks out and is above 630, your finance application will go through to the assessment stage.

Often, we speak to people that have credit score issues that don’t feel a sense of urgency to work on the problems dropping their score. One client once told us he had planned to work on it on his own, but thirteen years later, he still was not credit worthy.

In this article we have some pointers for you to consider on how a poor credit score impacts your life. A different perspective can help you to find the motivation you need to change your circumstances for a better future for you and your loved ones.

A poor credit record will:

1. Make you pay more interest and fees

One of the main factors that lower your score is arrear debt. Most people that have low scores have unpaid debt in arrears affecting their profiles. This will result in the lenders charging interest on interest, with penalty fees. They charge you for everything, even admin fees to contact you or sms you about your arrears. By not asking for professional help you must keep paying full interest rates charged from 17%. You miss out on the opportunity to get a reduction in interest rate right down to 9%. This can have a massive impact on your debt recovery so you can get out of debt sooner and increase your score over time.

2. Stop you from being approved for more credit

If your credit score is lower than 630 you will not qualify for your application to be assessed. Your application will automatically get declined once a credit check gets actioned on your id number.

3. Exclude you from cheaper services that require a clear credit record.

For some monthly services like fibre internet, a good credit score is a must. Clients that don’t qualify are forced to stay on prepaid internet which costs so much more. Another example is the “rent to own” model to buy a car. The clients have no other option so they have no choice but to  overpay for the vehicle because they are considered high risk.

4. Increases your risks of being a victim of loan scams

We have cases of clients turning to us for help after they were already scammed out of money for a “loan promise”. They were told that due to their credit record they must pay an upfront fee for “attorney fees”. They are so desperate to get a loan that they pay the money and then never hear from the loan company again.

5. Can affect your career prospects

In some industries like finance, it’s a requirement to have a good credit score. A negative credit score can affect future promotions and the opportunity to earn more money.

As you can see a poor credit record does not serve your life in any way. All it does is cause more financial suffering. That’s why if your score is low, it’s best to tackle the problem sooner than later.

You have the option to work on your credit score on your own. Have a look at this article for 8 tips to get you started:

Another way to fix your credit score is to work with a professional.

We offer credit repair services to help all clients that have low credit scores. Some clients will have small issues that can be sorted in 30-60 days. Other clients will need credit relief assistance and reduced interest rates, to tackle the arrear debt. This will take longer but with a plan it can be achieved sooner than you think.

Every person is different and thus we can’t tell you how long it will take to fix your credit record without a quote.

Our quotes are free and break down all the work and fees that you will pay to get the work done. We also offer payment solutions to make the service affordable to you.

Conclusion

A good credit score is like your passport to credit. Without it you will not be credit worthy and able to get financial assistance from lenders.

By working with a team that has years’ experience fixing credit scores, you can speed up the time it takes to repair your credit profile.

Get in touch with us today for your free quote