Establishing a good credit score can be a powerful financial tool, making life much easier. It increases the likelihood of being approved for loans and grants more negotiation power while lowering interest rates on credit and loans. Additionally, it can increase your loan limit, which can be used to build wealth, lower car insurance rates, and make obtaining an apartment or house easier, as most landlords today use credit scores as part of their tenant screening process. Unfortunately, according to a 2022 report, approximately 16% of Americans have bad credit, equating to approximately 48 million people.
To help address this issue, Tony Guilbeau, the CEO of National Credit Resource, a leading credit repair company, has shared his expertise on credit repair. Tony and his team help people restore their profiles and build strong credit foundations to achieve financial freedom by analyzing credit reports and guiding individuals through the process of getting negative, inaccurate, or unnecessary information deleted from the three major credit bureaus: Experian, TransUnion, and Equifax.
According to Tony, the first and most crucial step in credit repair is knowing your credit score. Checking your score and reports can help you understand your credit position, the factors affecting it, and what you need to do to improve your score. Tony explains that your credit score is affected by different factors, including payment history, length of credit history, inquiries, and credit utilization or amount of debt. Payment history is one of the main areas that significantly impact your score. Creditors report your payment activity to the major credit bureaus every 30 days, and while one late payment may not affect you, multiple late payments can significantly impact your score and deem you untrustworthy. Therefore, it is imperative to ensure you pay on time.
Tony describes the credit score as a highly trust-dependent transaction, and to get a score of 700 or higher, you must be ready to invest in it. Tony explains that just as you wouldn’t want to be late for a job or any other life-changing occasion, you shouldn’t be late on any payment because it’s more about establishing great relationships with banks. They want to see that if they lend you money, you will pay it back on time. Late payments don’t paint a nice picture.
Tony Guilbeau’s own experience with bad credit scores despite making $500K per year made him realize the importance of managing his credit score. When he applied for a bank loan to invest in real estate, he was not eligible due to his poor credit score. The experience was frustrating but eye-opening, and he began looking into how he could improve his credit score. Months later, he managed to repair his credit and even bought his mother a home. Now, he is using his expertise to build his own empire and advises others to invest in research, be patient, and learn from others in the field to improve their credit scores.