Many people only discover the importance of having a high credit rating after their credit history gets tainted with bankruptcy, foreclosure or several loan defaults. This is because nobody is willing to lend to anyone who has a tainted credit history. In fact, nobody is willing to hire someone who has proven to be irresponsible in handling their own personal finances. In addition to that, renting a car or house when you have a tainted history will become a little bit difficult. These are just some of the reasons why it is always a good idea to maintain a high credit rating through prompt repayment of your loans.
Causes of Poor Credit
Credit scores are basically a measure of the creditworthiness of an individual based on their loan repayment history. There are several things that consumer credit reporting agencies normally use to score an individual. The first is the promptness of payments made by an individual. The second is the fullness of payments. If you make late payments, or pay your monthly installments partially, therefore, you can be assured of getting a poor credit rating. Similarly, if you miss several payments, you can expect to score poorly. Foreclosure and bankruptcy, on the other hand, can lead to blacklisting of a consumer by major lenders.
How to Repair Your Credit
There are two main options for building your credit. The first is to take out several small loans and repay them according to the terms and conditions agreed with your lender. Since all the lenders will report the positive repayment, you can increase your credit score pretty fast. However, this may take a little bit longer than you would like.
The second, and also the most effective, option is to use a credit repair service. In that regard, Credit Secrets is considered one of the most effective credit repair programs available to consumers, if not the best. According to Credit Secret review, the program takes around 90 days to produce positive results. You only need to sign up and pay the required fees as agreed with the company. After only 90 days, you can expect your credit score to increase from the lows of 400-500 to the highs of 750+ points.
While the program may be highly effective, it is not free. The good news is that any money you spend on the program can be recouped within a short period of time. After all, a high credit score will qualify you for low-interest loans and financing, which means you will save a lot of money in terms of reduced interest payments.