The Plight of the Middle Class and How Credit Repair Can Help

If you earn a middle-class wage, to live a middle-class lifestyle, you need good credit. Purchasing a home or even a decent care, these days, generally requires taking out a loan and your credit score not only impacts whether you qualify for the loan, but also the interest rates you will pay. Paying a higher interest rate can result in paying tens of thousands more in interest over the life of a mortgage and thousands more for other types of loans. However, being a middle-class earner can also make you vulnerable to things that can wreck your credit, such as unexpected medical bills you struggle to pay. Fortunately, credit repair can help.

What is credit repair?

Credit repair means different things to different people, but generally is a process that results in increasing your credit score.

What does a credit repair company do?

A credit repair company looks for discrepancies and potential errors in your credit report, notifies your creditors of these discrepancies, and, in many instances, gets negative items removed from your credit reports. These negative items can be items that are true errors as well as items that may have a factual basis, but where the proper procedure was not followed.

Does credit repair remove my debt?

No. If you have a credit repair company telling you that they can get rid of debts you have, they are not offering legitimate credit repair services. Only bankruptcy can completely remove a debt. However, some credit repair companies can get items removed from your credit report, help you develop a plan to pay off your debts, and even negotiate settlements or charge-offs with your creditors.

How does credit repair help?

You need a good credit score to get approved for financing, pay reasonable interest rates, get good car insurance rates, and sometimes to even get a job. Repairing your credit score is one of the critical steps to living a middle-class life.

Does my credit matter if I handle all of my transactions in cash?

Absolutely. Even if you are in the position to purchase your home or automobiles outright, in cash, your credit score still impacts your life. From potential employers to insurers, companies check your credit and use it as a proxy for your trustworthiness or the risk of doing business with you.