Are you drowning in debt and need help managing your finances? Has your credit score been taken and dive and do you need help restoring your credit? If so, then you may benefit by hiring a credit repair company to help you turn things around. The best way to maintain a good credit rating is by managing your money wisely, however, if you are struggling with credit problems, there is help available. Today we will do a deep dive into how credit repair works and why you should consider using a professional New Mexico-based credit repair service.
Living in New Mexico proves to be a little cheaper than other states. The cost of living in this state is lower than most surrounding states, with real estate and basic necessities both being lower than the national averages. In line with this, New Mexico is just above average on the list of state credit card debt per person. The average person in New Mexico has $5,243 in credit card debt, just $50 above the national average.
Credit scores in New Mexico are below the national average by 15 points, with the average person having a credit score of 699. While this is still considered a good credit score, it's better to have a credit score of 740 or above if you want to access the best tier of loan products available. Some New Mexico residents may be able to benefit from credit repair to improve their credit score through removing entries from your credit card that don't belong.
New Mexico has no state laws that specifically address credit repair. They lean on the federal Credit Repair Organizations Act (CROA) for regulating these companies. This is a federal law that dictates how credit repair can be provided to customers, including requiring all companies to give written contracts to customers, to charge after the service is provided instead of pre-charging, and to communicate honestly about what the service is, among other things.
There's no need to hire a lawyer for credit repair in New Mexico. While many lawyers do offer the service, it's not restricted to only them. You can work with any company that offers the service within the state, or do it yourself, although this is not recommended. You can have a good experience working with any company, so don't be deterred by their lack of legal qualifications.
You can expect the New Mexico credit repair process to go something like this:
Step 1: Get your credit reports
Credit reports are records maintained by one of the three major credit bureaus in the US. Each one keeps their own record of credit related transactions that are reported to them by businesses you interact with. This report is available to you for free once every 12 months, or for a small cost if you've already requested your free credit report within the last 12 months. Requests for credit reports can be made online with each of the three credit bureaus or can be requested by mail.
Step 2: Study each entry on the reports
When you receive your credit reports, you need to look closely at them to understand the entry is being used to calculate your credit score. Each type of entry has a different weight in the credit score calculation, with payment history being weighted the highest. If there is any incorrect information on your credit report, this could be impacting your credit score negatively. The only way to remove these inaccurate entries is to contact the credit Bureau directly with a dispute letter.
Step 3: Submit disputes for inaccurate entries
Dispute letters mark the beginning of the process of removing an inaccurate entry from your credit report. These letters usually contain evidence to show why the entry is inaccurate or incorrect and contain a request to remove or modify the entry accordingly. Credit bureaus must take these dispute letters seriously and investigate your claims if you provide enough evidence and information to them to suggest that it's a real claim.
Note: Although it's only three steps, the credit repair process is not simple. Credit bureaus are flooded with requests to remove negative entries from credit reports constantly, with many of them being illegitimate requests from people trying to get a better score without reason. Working with a credit repair company that's experienced in providing the service can help you to get it done more smoothly.
Living in New Mexico is the epitome of living the American Dream, but sometimes that also may include setbacks when it comes to your credit. Trying to navigate the world with bad credit can seem difficult, but thankfully are options available if you want to turn things around. You can challenge things in your credit report on your own, or can hire a professional service to help. Just keep an eye out for people who are looking to take advantage of you during your time of need. There is no quick way to repair your credit. In order to fix your score legally, it takes time, effort, and proper financial management. When you hire a reputable credit repair service to help fix your credit, they will do many of the same things you can do yourself, but more efficiently.
Developing a good credit score takes time and active participation on the part of the consumer. The same goes for a bad credit score. It can be easy to fall behind on bills or even let late payments become a habit. If you lost your job and have fallen behind on payments, or if you simply are living above your means, it can cause you to end up with derogatory marks on your credit report. All of these things contribute to your credit score and can cause your rating to drop.
In order to avoid lowering your score, it is important to create and follow a budget that will help keep you on track. Maintaining a budget or a financial plan will help you save for the future and build your credit at the same time. We understand that saying something and actually doing it are not the same. If you are having trouble keeping up with your outstanding debts, or if you are not sure how to create a livable budget, there are options available to help. Also, if you are already behind on your bills and want to repair your credit while catching up, the same resources can help you reach your goals.
Most people who have bad credit are also hounded by debt collectors. They call at all hours of the day and send endless amounts of letters trying to collect on past due amounts. While they may be trying to collect a legitimate debt, dealing with them can be extremely stressful. A professional credit repair service will be able to make the phone calls and the letters stop while you work to satisfy your debt and repair your credit.
A credit repair company will send out cease and desist letters to stop the harassing phone calls. They can negotiate settlements or payment plans on your behalf that will give you the breathing room you need to catch up on your bills. Depending on your circumstances, this may include debt consolidation. A skilled agent will even be able to get many debt collectors to remove their derogatory entries as a part of the repayment settlement.
Bad credit scores can see a huge jump upwards after the credit repair process. This is because any negative entries on your credit report can have a disproportionately bad impact on your score overall, so having these entries removed through credit repair is very beneficial. Only inaccurate or fraudulent entries can be removed from credit reports through the credit repair service in New Mexico.
Depending which credit repair company you work with and what services they provide in tandem with their credit repair service, you can expect to pay anywhere between $89 to $199 per month for credit repair in New Mexico. However, there are many companies providing the service, so the range of costs is wide, anywhere from $59 to $249 per month. Most companies will also charge fees in the beginning of the contract known as setup fees.
You have little to no control over the timeline for credit repair. Because of this, the process often takes between three to six months from start to finish. There are often delays that keep your inaccurate entries from being removed until a thorough investigation and extra evidence is provided to the credit bureau.
New Mexico has many large cities where credit repair might be advertised more heavily, such as Albuquerque, Las Cruces, or Rio Rancho. However, you can access credit repair service from anywhere in the state, regardless of which city you live in. Smaller cities like Bernalillo, Española, and Bayard can also get credit repaired from the same companies that offered in large cities. There are no restrictions on who in New Mexico can hire a credit repair company.