Credit repair – what’s it all about
You have probably heard of credit repair services and the practice itself. In fact, you have probably been shelled by the advertisements from companies that offer the most incredible credit repair services you can find. They are being advertised as miracle sent from heavens and that is exactly the reason why you should learn more about this practice so that you know what you can expect.
Well, it all starts with you wishing to borrow money from a bank, for example. Now, they need to calculate the risks they are getting into by lending you the money. With banks and loans it is all about statistics and covering for all the possible eventualities. Therefore, they see your credit rating as the indication of how likely you are to pay them back.
These credit ratings are, in fact, statistical representation of your financial history and current situation and they are in fact a compilation of these, a huge list that is then analyzed in order to calculate whether you will be given a loan and how much you will need to pay back. Now, if you thought that it was the government providing this information, you would be very much mistaken. In fact, this is handled by three, private companies called Equifax, Experian and Callcredit. And considering how many people they are evaluating, there are bound to be certain mistakes that bring your credit rating down.