How Do Credit Repair Companies Work?

Running a business is very difficult. In some cases, business leaders work for 70 hours each week. This can impact your finances. It becomes easy to overlook small details or forget to pay debts on time. However, these small actions can have a big impact on your credit score. Thankfully, there is a way for you to correct a poor credit score, using a credit repair company. Let’s look at some of the ways these companies can help you improve your credit score.

What Is A FICO Score?

First, though, let’s look at what a credit score is and why it’s so important. In some cases, your credit score might also be referred to as your FICO score. This is a tool that takes all your previous financial history and puts it into a numerical score. To make sure that this is accurate, several factors are taken into account. This can include things like; your payment history, your outstanding balances, how long your credit history is, the type of credit that you have, and amount of credit inquiries that you have made. Some of these factors might be considered more important than others. The institutions will account for this by assigning each element a percentage. For example, payment history might represent 30% of the score, while inquires will only make up 10%.

To make it easier for financial institutes to understand, the FICO score is boiled down into a single number. These will range between 300 to 850. The lower your credit score, the harder you will find it to get people to loan money to you. Your scores will also impact on the interest rates that you will be expected to pay. If you are a riskier investment, you might need to have higher rates, so the banks can justify giving you a loan. However, in business, this can damage your profit margins and make it harder for you to grow. Generally, you should aim to have a score that is higher than 650.

Checking Your FICO Score

If you have applied for a loan and been rejected, it can be demoralizing. In some cases, the lack of finances might start to have a negative impact on your business, limiting your expansion. Often, you might wonder what can be making banks unwilling to lend to you. Thankfully, there are a few easy ways that you can check your FICO score. This will let you know if there is a potential problem that needs to be addressed.

There are several sites that you will be able to use to check your credit score. Often, you will need to fill in a few details, so they can get the right score. However, you should make sure that you go through an official source. This often means using a bank, or credit score company like Experian. When doing this, you shouldn’t have to pay, as there are plenty of free resources available online. Over time, this score will be changed, depending on the type of transactions that you make.

How Can A Credit Repair Company Help Improve Your FICO Score?

After checking your business credit score, you might discover that it is lower than you anticipated. If this is the case, there are a few things that you can do to improve your score. For example, you can reduce the amount of debt that you have. However, one of the first actions should be to book a meeting with a credit repair company. Often, the first thing that they will do is go through your credit report with you. This offers more detail than the credit score, telling you some of the reasons why the poor FICO score occurred. Once they see this, the credit repair company can start to understand some of the things that need to be corrected.

There are a few things that the credit repair company will do to improve your FICO score. For example, they will be able to point out duplicate entries. They will also be able to find any accounts that don’t belong to you. Then, they will discuss these problems with the credit company. Often, they will be able to get these issues resolved. This can result in an improvement in your credit score.

Why Should You Hire A Credit Repair Company?

While you will be able to take these actions yourself, there are a few reasons why you might want to hire a credit repair company. First, it will remove a lot of the hassle from the process. When you are running a business, there are multiple elements that you will need to focus on. If you split your attention too much, your business performance might start to decline. In addition, you will get the assurance that everything has been done correctly. Often, this area can involve a range of complexities. If you don’t follow the right procedures, you might not achieve the desired outcome. Finally, these companies know what things they are looking for. Some of the incorrect transactions can be very difficult to spot. For this reason, hiring a company ensures that you will get the maximum possible benefits.

How Long Does It Take To Improve Your Credit Score?

Finally, let’s look at how long you can expect to wait before you start to see your credit score improving. This will often depend on how long it takes for the inaccuracies to be identified and removed. In most cases, companies will have 30 days from when the error is reported to fix the problem.

Conclusion

Getting rejected for loans, or facing high-interest rates, can be a major problem for business owners. Lack of funds can easily stunt your growth or weaken your performance. Thankfully, there is an effective way for you to improve your business credit score, by using a credit repair company. So, contact the South Florida Funding Group today and learn how their team of experts can help you improve your FICO score.

At South Florida Funding Group: WE FUND THE IMPOSSIBLE, EVEN CANNABIS!