If you have bad credit, you probably learned too late how much negative impact it can have on your life. Bad credit isn’t just a scorecard telling you you’re not rich. In fact, plenty of wealthy people have poor credit. What bad credit actually means is that you don’t have the credit history necessary to be loaned money, or to be loaned money at affordable rates.
It all starts with your credit score. Your credit score is what lenders look at when you ask to borrow their money. This is true if you’re taking out a loan on a new motorcycle or getting a new credit card. The credit score tells a story. The score comes from a record of all of the credit decisions that you’ve made for the past seven years. This record is kept by three different independent agencies, TransUnion, Experian, and Equifax. These companies aren’t run by the government, but they are empowered by the government to do what they do. They are also closely regulated.
If you have unpaid bills, late credit card payments, or you used way too much credit in the past, chances are your credit score is in the toilet. The score does more than remind you of mistakes that are in the past. It also has a lot of impact on your future opportunities. One big example is is the way you’ll have access to big loans like mortgage loans.
Mortgage loans are a huge amount of money for most people. They’re big for your bank too. Though your mortgage isn’t going to make or break a bank, a thousand certainly might. So your bank has careful policies about who they will and will not give money to. If your score is too low, it means that you are likely to default on your loan, keeping the bank from recovering their money. The banks don’t like that, so they restrict loans to people who have good credit. The alternative is that they might give you a loan at huge interest rates, just as they did during the subprime mortgage loan crisis.
People who get loans at bad rates because of their bad credit may not realize how much money they could have saved if they just had a better credit score to begin with. AAACreditGuide is a company that specializes in rehabilitating credit so that you can save on those big loans in the future. They can work with you to establish new credit habits, pay off the outstanding debts that continue to weigh down your credit, and dispute the negative marks that remain on your credit report. It’s technically possible to do all of these things yourself, but it does require some hard work and not a little bit of knowledge. If you need to make a change in your credit life, but you don’t think you have the inclination to make the changes on your own, it’s important to work with a company that can turn your credit around.