It’s common sense that consumers who are looking for lower interest rates are going to need a more positive credit history and a higher credit score before they can achieve rates on lines of credit by personal loans or credit cards that will be affordable, particularly when a balance may be carried on a card or a loan that may have a long repayment time frame. However, when bad credit repair begins, many consumers will need information or assistance to start this process as some may simply be unaware of how certain actions in their personal financial lives will impact their credit score, and many simply start by acquiring a credit report and looking at their credit score.
Yet, there has been some issues which have arisen where consumers are purchasing their credit score and may not be getting a score that a lender sees, which has led to some fraudulent credit score reports being issued to consumers who are looking for bad credit repair assistance. The good news for consumers who are in the position where they need to repair their bad credit score is that there may be better information offered, in terms of a consumer’s credit score, thanks to legislation that not only requires that a bank or other lender offer a consumer their credit score when certain access to credit is applied for, as a way of showing why a consumer may be getting a particular rate, but action required by the Dodd-Frank financial reform legislation is hoped to also clear up any discrepancies that consumers may see in their credit score they are given access to and what a financial institution may use.
Consumers must remember that looking at their credit history, in order to get a better picture of what they owe and correct any mistakes that they may find, as well as looking at their credit score so that they know where they’re starting are primary aspects of bad credit repair, but this is not the only step that a consumer must take. While there are options from nonprofit credit counseling agencies that can help consumers set financial goals or put them on a faster track to debt relief, which may need to be one of the first steps a consumer takes before even considering bad credit repair, consumers must simply implement responsible behavior in their financial life if they are to succeed.
While current legislation and new rules on providing credit score information to consumers may be helpful, it is only beneficial if a consumer will use this data they have to implement better practices in their financial life in terms of spending and repaying various debts. Obviously, on-time payments, the type of credit a consumer has, the amount of debt they carry versus the amount of credit available are aspects of a consumer’s life that can factor into their overall credit score, so it’s important to keep informed and seek help if necessary so that the ultimate goal of increasing one’s credit score and improving a credit history can ultimately help lead to lower rates and affordability on future lines of credit that may range from auto loans to mortgages.