10 Signs You Need Credit Repair

Contrary to popular belief, credit scores are not actually fixed in stone. They can be brought up with some time and the proper techniques. Some people don't even realize that they should try to repair their credit. If you have one or more of these 1 signs, you should look into credit repair.

1. Recent credit card denial

If you've recently applied for credit in the form of a loan, credit card, etc., and you were denied, there is a good chance that you could use some credit repair work. There are other explanations, such as no sufficient source of income or too many recent accounts, but in general, bad credit is the number one reason for denials.

2. Your bills are under someone else's name

If your electric or gas company has someone else's name on the bill because your credit history is less than optimal, you definitely need to look into credit repair. You shouldn't have to worry about whose name is on your bills because it should be yours. The sooner that you can fix your credit and get your name back on your bills, the better. That way, you won't have to worry about it and the other person whose name is on your bill won't have to worry about being held accountable.

3. Debt collectors are blowing up your phone

While there are many scams that involve people alleging to be with debt collection agencies if you are receiving calls about a debt that shows up on your credit report with any of the major bureaus, you should look into your options about fixing it. Depending on the situation, not only will it probably save you money, but it can also get rid of so many annoying phone calls.

4. No one will cosign your loans

If your friends and family aren't willing to cosign your loans, it is a very strong sign that you need to get your credit fixed. Having to rely on a cosigner is usually a good enough indication that you should look into repairing your credit, but certainly not being able to get a cosigner is a clear signal.

5. Potential employers are denying you after credit checks

Surprisingly, not many people know that their employers often run credit checks before hiring someone. If you have been struggling to get a job recently, your poor credit history may have been a factor. Check your credit report and work to repair your credit score and hopefully, you will have more success when getting a job in the future.

6. Landlords deny your applications

Like employers, lots of landlords will look at your past credit as a part of your application. This makes sense because if someone has a lot of debt that they haven't paid, they are usually less likely to make their rent payments on time, if at all. Having poor credit can restrict the places you live, which can cost more money, take extra time, and cause additional stress in your life.

7. You don't check your credit report out of fear

When was the last time you checked your credit report? If it has been a while, why is that? Many people who are worried about their poor credit will go quite some time without checking their reports. Unfortunately, even though you don't look at it frequently, the problem does not go away. Instead, you should fix your credit and feel proud when you check your score often.

8. Your credit score doesn't start with a 7 or 8

Scores under 720 are usually considered subprime, which is where a lot of American's scores are at. If this is you and it is caused by defaults, unpaid debts, or any other negative marks on your credit report, you should look into repairing your credit right away. Good credit can make a huge difference in where you live, how much money you make, and the interest rates on the debt that you have.

9. Your interest rates are skyrocketing

Have you received letters from your credit card companies recently about your interest rates changing? If so, it is likely due to your credit score. Most credit card interest rates are set based on your credit score. The lower the score, the more risk the company assumes by lending you money, therefore, they charge you more on any balance that you carry. The difference can be huge, because people with good credit may be able to get cards with rates as low as 8% APY, but people with bad credit may have to pay almost 30% APY.

10. Your credit cards are getting closed right after you pay them off

A technique often used by credit card companies when they determine that you pose some sort of risk is to lower your credit limit as you pay off your debt to them. When your debt is completely paid off, they'll either leave you with a low limit, such as $300, or close the card completely. If this has happened to you, it means that the company believes you pose a high default risk due to your credit history.

If you found yourself on this list, especially if several points describe you, you should start by examining your credit report. If there's anything that is hurting you, consider contacting a credit repair agency to help dig yourself out of the whole and hopefully help you avoid being on this list ever again.