Three Reasons to Repair Low Credit Scores

Many consumers are unpleasantly surprised when they receive a recent report that shows their official credit rating. It is recommended to aim for a score of 700 or higher, and the highest possible FICO score is 850. Lenders do not confirm exact numbers, but higher ratings show that a consumer is a reliable borrower. To these borrowers, lenders offer larger loans at lower rates. Some consumers turn to solutions like debt consolidation services to lower rates on loans--but the ideal scenario is to get and keep credit ratings high for low rates upfront. Many consumers are surprised at the difference credit scores can make, motivating some to seek credit repair service once they learn the following:

• Consumers with a rating of 720 receive loans at rates much lower than those with scores of 640 and below. To see how this affects payments, take the following example: On a $350,000 mortgage, a borrower with a high score could qualify at around 6%, whereas a borrower with a lower score might qualify at 8%. This small difference in interest results in about $150,000 more over the life of the loan, raising the mortgage from about $2100 to over $2500 per month!


• Individuals with FICO credit scores below 620 are nearly always rejected for mortgage loans. Whether FICO or the new BEACON score, high ratings allow consumers to secure mortgage loans, and low scores will work against them. To own a home, buyers must maintain a credit score that assures lenders of their financial stability. Even for individuals whose credit has suffered serious damage, bankruptcy credit repair is possible after time--but it is necessary to begin sound habits immediately to receive the payoff later.


• Borrowers with high credit scores get the 0% interest rates both on auto loans and credit card balance transfer offers. Consumers with damaged credit are most often ineligible for these offers that could save them hundreds or thousands of dollars. Who is qualifying for these loans? Those individuals who have credit scores in the 700s. Consumers with minor setbacks can often take steps for fast credit repair, but other negative marks take time to remove.

For consumers who have damaged their credit with late bill payments, foreclosure, or other such scenarios--now is the time to begin mending the damage. Those who do not know where to start can seek credit repair counseling and follow up with the proper steps. Remember--even the most serious financial errors are eventually removed from a credit report; therefore, anyone who wishes to have spotless credit can achieve that goal in time, regardless of their current rating. The key is to begin credit rating repair immediately by paying bills on time and managing money carefully. Consumers who need to improve their credit history should begin the process immediately. Above all, remember that effectively repairing credit report scores is not magic--anyone who follows the proper steps can do it.

Vitesse Financial offers a long-term approach to repairing credit the legal way. We offer credit repair services for clients with low or bad credit scores due to various reasons including repossessions, closed accounts, negative settlements, charge-offs, and identity theft. Our services also benefit people who have recently filed bankruptcy or have liens. To learn more about our credit score raise services, please contact Vitesse Financial today. While you will experience positive results in the first 45 to 60 days, it is not uncommon to continue seeing improved credit scores six to nine months after initiating our services.