I’m often asked about the common issues we encounter when consumers provide their credit reports to us or when brokers send their clients’ credit reports our way. In approximately half of these cases, we come across negative data that can’t be rectified. It’s a reality we face, and about half the time, our role involves educating individuals.
One crucial aspect I want people to be aware of is the significance of consulting with a finance broker before making any inquiries. Whether it’s a car loan, personal loan, or mortgage application, every inquiry without consulting a broker first results in a loss of points. Often, people don’t realize that each time they hit that “inquire now” button online, the lender checks their credit file, leaving a hard hit that can cause a drop in their credit score by about 50 points.
To put this into perspective, our credit scores range from 0 to 1200, with a score of 700 or above needed for access to certain types of finance. A drop of 50 points could significantly impact one’s eligibility for loans and credit cards. Understanding this is crucial to protecting one’s credit report and score.
Another factor worth mentioning is repayment history information. Missing even one or two credit card payments can lead to difficulties in securing loans, especially in the current real estate market where interest rates are soaring.
As a credit repair professional, I spend a significant portion of my time educating clients on these matters. Unfortunately, some issues, like missed payments, are beyond my ability to fix. It’s a challenging reality that individuals may be out of the market for months or even years due to credit report impacts.