Having your debts end up in collections can do horrible things to your credit score. If you live in New York, you have options to help start repairing your credit.
Why is a Good Credit Score Important?
Most people know that having a good credit score is important when getting a loan. The higher your score the lower your interest rate. Two people financing the same car for the same price in the same timeframe can have dramatically different monthly costs. With a bad credit score, you can end up paying hundreds of dollars a month more.
If you are a renter, many landlords will run a credit check as part of their background screening of potential tenants. Landlords tend to view low credit scores as a red flag and a sign that the renter is a financial risk.
Depending on where in New York you live, employers may run a credit report on you as part of the hiring process (except for some jobs, this is now considered illegal in New York City). A bad credit report may end up costing you a job you really want or need.
Who Creates the Credit Reports and Where Do They Get Their Information?
The three main credit reporting companies are TransUnion, Equifax, and Experian. These credit bureaus get their information directly from your creditors and from public records. This information is then entered into your credit reports, and this is where mistakes can be made.
One in three Americans find errors on their credit reports. There are primarily three types of major red flags to look for:
This is why it’s so important to check your credit reports on a regular basis. Because there are three credit reporting companies, you need to check all three reports. You have a right to review your credit reports for free every 12 months. You can contact each company individually, or you can use this site to request all three – https://www.annualcreditreport.com/index.action
Why Should I Hire a Lawyer Instead of a Credit Repair Company?
This really depends on the damaging information. Some simple mistakes can be cleared up by calling the credit reporting companies directly. But for some of the errors on your report, you may need the help of a debt attorneythat specializes in credit repair.
To learn more about repairing your credit, click here.
What to Do Next
If you are struggling with the effects of a low credit score and/or have found damaging information on your credit reports, you need to take action. Reach out to New York debt attorney Ronald Weiss for a free consultation. He can guide you through the available options for your specific needs. Ron can get the process started and will be at your side the whole time. Call 631-271-3737 and take the first step to a fresh start.