download (2)The first question people ask is how much will credit repair cost me? It is undoubtedly an important question. But I think the more important question is – how much will it cost me to leave my credit file as it is?

If your credit file has black marks on it, that is, excessive enquiries, overdue accounts (defaults), court actions, and late repayment history information, you may be turned down for any credit you apply for. You may be applying for something as small as a mobile phone contract or something as large as a mortgage for your first home, and you will simply not be able to get approved.

Alternatively, you may be only approved for a high interest loan, with large upfront application fees, and an interest rate that is 2-10% higher than mainstream lenders.

This means:

On a home loan, you will pay up to $10,000 more per year in interest on your mortgage. And the lender who gives you the loan will appear on your credit file. This will create a red flag for all future credit applications. This is because it looks like you had to resort to a high interest loans because of your poor credit file.

On a car loan, your interest rate will be as high as 25%, doubling the amount you could pay for your car with a mainstream lender.

Personal loans will only be approved by payday or other high risk, high interest, unsecured lenders. The interest rates for these loans can be as high as 97%, compared to 10-12% interest if you are approved with mainstream lenders. The name of the high-risk lender will also appear on your credit file. This will create a red flag for all future credit applications, because future lenders will think you could only get a high risk loan because of your poor credit file.

In comparison:

Our fees to successfully remove 1 black mark from your credit file are $1500. For each subsequent black mark our fees to remove are $1000. Our statistics show that we will clear your credit file of black marks in over 8 out of 10 cases. If we are not successful in clearing your credit file, we will refund you $1000 for each listing we are unsuccessful with.

Our flexible pay as you go payment plans mean we can start to repair your credit file for as little as $250 per week.

So, when I am asked how much credit repair costs, I often think the better question to ask is how much is my current credit file costing me? It is costing you thousands of dollars extra in interest per year, or if you can’t get credit, it is costing you your financial freedom.