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Credit repair services and resources for
Americans.
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What is Credit?
Credit is a term used to describe a contractual agreement between a
borrower and a lender wherein the borrower receives money or goods from
the lender now and agrees to repay the lender at a later date. In
situations such as a mortgage, bank loan, or car loan, the borrower pays
the lender money for providing credit. Many credit cards allow the
borrower to use the money for up to 30 days without charging a fee;
however, money not paid back during this time period then becomes
subject to interest charges which can be upwards of 20%.
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Lenders typically do not provide money or
goods to just anyone. A lender, or creditor, has ways of assessing a
person's credit worthiness. This means that they try to ascertain in
advance how dependable a person will be at repaying the loan. Creditors
do this by examining a person's past performance in any number of areas
having to do with money. These can include a person's employment
history, salary, and current debt ratio. One's debt ratio is a term used
to describe the percentage of monthly income required to service
existing debts. Also important is a person's history of borrowing,
typically called a credit history. In this area, lenders are interested
in one's history of debt repayment - do you pay bills on time and in
full - do you only pay 'minimum payments' on credit cards - do you pay
your rent on time. Often, any past history of bankruptcies and even
criminal convictions may be used
to assess a lender's risk.
If you are unsure what
your credit report says about you, fill out a FREE, NO OBLIGATION
credit repair
evaluation form online today!
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Your credit worthiness is summed up in a credit score. Different lenders
use different methods to assess your credit worthiness; however, often
your credit score as computed by the three major Consumer Reporting
Agencies (CRAs) is the most important. These
credit bureaus are huge multinational
corporations that compile details about your personal and financial
history, then use complex mathematics to compute your credit score. This
compilation of your history
and credit score is put together into your credit report. CRAs then sell
this report to financial institutions, employers, landlords, and others
from whom you have requested credit.
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It is critically important to understand that these corporations that
sell information about you can make mistakes. This is why the
credit
repair industry exists. Professional
credit repair services can help
individuals get inaccurate and out of date information off their credit
reports. This is also why every individual is encouraged to request a
copy of their credit reports every year to ensure that the details being
reported about them are accurate. Any mistakes present on your credit
report can end of costing thousands and even tens of thousands of
dollars.
Creditors assess your credit worthiness using your credit score, which
is contained in your credit report. Understanding these two concepts is
extremely important in understanding credit itself. Every type of credit
being considered should always be researched fully in order to get the
best repayment terms at the lowest possible price.
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