Repair Your Credit Profile

There is no simple cure for poor credit.

But it’s easier for folks who know how to get by that difficult interim period between monetary meltdown and financial stability.

Based in Tampa, Fla., Focus creates a competitive environment among lenders who service consumers with less-than-sterling credit.

The goal is to help people get out from under by providing loans at interest that is higher than folks with good credit pay, but less than the rates high-risk borrowers typically pay.

But Vazquez and partner Rob Anderson discovered they couldn’t find reasonable rates on loans for most of the people they were trying to serve.

“We’d see credit scores of less than 500, multiple (auto) repossessions, overdue medical bills,” he said, noting that a score of less than 600 is considered undesirable.

In fact, a Focus survey found that 50 percent of respondents had been turned down for a car loan; 23 percent couldn’t get a bank loan; and 12 percent were rejected for mortgages.

People with poor credit who do obtain loans can expect to pay a hefty premium.

“For example, a typical interest rate on an auto loan for a person with good credit is 3.9 percent for a 60-month term, but a consumer with bad credit would likely pay approximately 12 percent interest,” Vazquez said.

More than half the respondents confessed to making chronic late payments, a practice that can erode a consumer’s credit score by as much as 35 percent — and take as much as six months of flawless payments to repair.

Steer clear of department store credit cards, which typically carry interest of 26 to 27 percent.

If you’re stretched too thin to make minimum payments, contact the credit card bank and ask for help in setting up a plan.

If you wind up buying a car at a buy-here, pay-here dealership, make certain the seller is part of a credit union network.

That transaction can help to boost your score.

Finally, keep your eyes on the prize.

Turning around your life will not be easy — but it will pay off over the long run both spiritually and financially.

-Adam



Time to repair your credit is time well spent (Courier-Post)

There is no simple cure for poor credit.

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