Credit repair has become a necessity. Prior to the recession you could afford to have blemishes on your credit report; lenders didn’t really care. If your credit score was a little low you would simply pay a modestly higher interest rate. Not the end of the world. But along with the recession came the most dramatic credit crunch ever. It started with mortgage lenders as they scrambled to mitigate risk in their real estate portfolios. Over the following year every other creditor followed in step. One thing leads to another and now millions of people are finding that without some form of remedial credit repair effort they are unable to purchase anything on credit.
The Credit Crunch
The severity of the credit crunch has taken many by surprise. In mid-2006 money was flowing freely. The economic froth was beyond anything the world had seen since the roaring twenties. Even then credit repair paid dividends, it’s true, but there was no desperate need. You could purchase a home with credit scores in the low 500s. You might even get an interest rate as low as one percent, albeit an adjustable rate mortgage. But, oh, how times change. Now, for millions of people, the lack of an intelligent credit repair effort can mean no loan at all. And the non-availability of credit can mean real hardship. Just think of something as simple as automobile financing. Can you do without a car? Urban dwellers might get by with public transportation, but that is not the case for most of us.