Credit Danger Signs

Here are several signs and indications that you may need credit counseling service or to have your credit repaired.

Do I Need My Credit Healed?

You may not be sure of whether or not you need to have your credit healed or repaired in any way. If not, you are not alone. Many Americans are not completely sure of what things affect their credit, or what their current status and credit score are. Find out below what the danger signs are that indicate if action should be taken.

The Rule of Three

There are three situations that may exist in your credit/payment history or current life that are indicators that you may be in need of credit repair or having your credit professionally healed. If any of the following apply to you, you are a likely candidate for a credit consulting service.

• You have creditors that have increased your interest rate
• You have made more than 2 late payments on your debts in the past six months
• Any of your accounts are in collections

If you have any of the above indicators in your life, you should seriously consider taking steps to improve your credit situation and eliminating the danger sign.

Overbearing debt

Your total unsecured debt (debt that is not secured by tangible property such as a car loan or mortgage) should not exceed 25% of your monthly bring-home pay. If it does, for any reason, including the loss of your job, you should consider seriously, credit counseling services that can help you heal your credit and get back a respectable credit score. Credit is not an item that usually heals itself well over time so immediate action is probably called for.

If you have had difficulty in the past paying on one of your credit cards or other debts and they have punitively increased your interest rate and payment amount to the point where you feel you cannot make even the minimum payment on the card, then you could probably use the help of a credit counseling service. Credit card companies can increase your rates for overcharging or paying your bill late to as much as a 30% APR or more. If you want to know more, or have unanswered questions, see if they have been answered in our frequently asked questions.