Your Credit Score is important when it comes to investing in real estate

Credit is an important factor in real estate investing, as well as in life in general. With a low credit score or no credit, it is often difficult to get any kind of financing and causes you to have to pay much higher interest rates. If you aren’t following my articles, I talk about credit scores. More importantly, how to establish or repair credit scores with options such as secured loans and credit cards. I have also given information on where to find credit information and a range of other ways to help credit scores. As my final post in this series, I am going to discuss credit repair services.

Companies that Provide Credit Repair Services

There are many agencies that offer credit repair services. The way these services work is, first they obtain your 3 main credit scores. Then they find items that may be disputed, and file the disputes while keeping in contact with the credit bureaus to move the process along. The companies that provide these service each have their own fees and terms to complete the process. So if you are interested in pursuing this method, be sure to do your research. Most of these providers will charge a fee between $60 and $100, and some maybe more. If this sounds a bit steep, consider what you will have to pay for higher interest rates or the losses from being denied a loan when you need it to purchase a property. Paying the costs to have your credit repaired will quite possibly outweigh the consequences of having a low credit score.

Do Your Research

As I mentioned before, always research as much as possible before you choose a credit repair company. Make a list of questions to ask before making your decision. Advice given on creditmarvel.com is to avoid any company that asks for an up front payment. Just as you would with any other company, payment for services rendered is to be made after the service is complete. Also make sure the company is bonded and insured, know what you will need to sign up, and make sure you have contact options as well as ways to track the progress.

Another way to help with the decision making process is to read reviews. It’s always helpful to read about another person’s experiences with a company. Especially if the majority of people feel a certain way about a certain company. There are plenty of websites that offer customer reviews. There are also multiple websites that offer their own reviews of credit repair companies and rank them best to worst. The above mentioned website gives its own recommendations on the best credit repair companies. You can also request a free consultation with some of the available agencies with no obligation to sign up for anything. Make sure that you always use any and all resources before making a decision.

Credit Repair Services work Quickly

This method of credit building makes most people somewhat skeptical, as the majority of them charge a fee for promises of big results in a short period of time. Promises for speedy results in a process that is known to normally take years would make anyone skeptical. However with the right research, information and agency, it is a possibility.

If you’re looking to get started in real estate investing, and are coming in with less than ideal credit, I hope my articles will help.  If there’s anything else you’d like to see me cover, please tell me in the comments below.

4 COMMENTS

  1. This article brings up a good point. Having your finances in good shape definitely helps with major purchases. If you are investing in real estate, having great credit will give you more leverage and access to more options with financing. While researching the article, is there one credit repair company that really stood out as a great starting point?

  2. Non payment and/or late payments are major issues for credit scores. Loving beyond your means and high credit utilization also damage credit. If you are just starting out, having no credit is pretty much just as bad as having no credit. I wrote a post about what affects credit recently if you would like to take a look. It should still be posted.