To put it plainly, credit is trust. Credit, credit report, credit score “Oh my!” These are all terms dealing with your financial reputation and trustworthiness as a borrower. Companies gather information about your spending habits, if or when you pay your bills late or not at all, and how much money you earn vs. how much you owe and spend. These companies are called credit reporting agencies or bureaus. Credit bureaus compile this information into one document known as your credit report. Based on the information in your credit report you are given a score, your credit score.

Being able to get something before you pay for it can be a very useful tool. Many companies will agree to allow customers to borrow money as long as you agree to pay it back. People or companies that lend money are known as grantors. Most people use their credit score to leverage buying power for large purchases like a car or a house. Another common reason to use credit is convenience. But, we all know, you can’t get something for nothing. Grantors lend money with the promise that you will not only repay what you borrow, but also an additional fee known as interest.

There are cases when a person may not be able to pay or may chose not to pay back what they owe, despite their promise. When credit cards and other loans are added to the regular bills we pay each month, it’s easy to get overwhelmed and fall behind. Our recent recession, unemployment, unexpected expenses, and, let’s be honest…poor planning can all lead to financial hardship.

In these cases credit reporting agencies keep track of anything that falls outside of the terms of the original agreement. Things like late payments and missed payments are recorded on your credit report and can lower your credit score. If your credit score falls too low you become a credit risk. Once your credit becomes damaged, few companies are willing to take the risk of lending to you for fear they will not be repaid.

It is possible, however, to repair damaged credit. In fact, it is your right to challenge the information on your credit report. Statistics have shown that up to 80% of ALL credit reports have errors on them. Information that is inaccurate or unverifiable should never be listed on your credit report. The key to successful credit repair is finding any and all inaccuracies on your credit report and disputing them. The Credit Repair Organizations Act permits consumers to hire a third party company to dispute accounts they believe are inaccurate or unverifiable. As an AMB Credit Consultants client, researching and disputing these inaccuracies on your behalf is our priority.

Responses to disputes need to be carefully reviewed. Our team of trained and skilled certified credit consultants know exactly what to look for. Sometimes additional steps are required to have erroneous items removed. We assist our clients through each step of the process. Despite our efforts, there may be times when an accurate reporting still has a negative impact on your credit. Time and consistency is the best way to address these items.

Many companies and grantors use your credit score and history to determine whether or not they should lend money to you. Having good credit is a reward for proving your financial trustworthiness. If you have a low credit score you may have wondered why it is so difficult for you to get approved for some of the things you’ve applied for. A low credit score and poor credit history tells potential lenders that you may be a credit risk. Because most companies are in the business of making money, they don’t like to take unnecessary risks.

There is more to having good credit than just being able to borrow money, get approved for credit cards, and make large purchases without paying up front. Employers and landlords will often use your credit score as part of their selection process. We love to see our clients enjoying the lifestyle that Luxurious CREDIT™ can lead to. Working to restore poor credit not only increases access to the “things” you want, but also the opportunities you deserve! 

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