Last updated on May 5th, 2022.

Have you ever found yourself saying,

“I don’t know how to increase my credit score?”

Fret not; it’s a simple process!

Building credit is all about paying things off and being smart about borrowing. While it may seem difficult in the beginning, you have access to a plethora of credit-building tools. One of the most impactful is a credit mentor (or credit manager).

But what is a credit mentor?

They’re essentially someone that specializes in building credit. Hiring one would bring you a plethora of benefits, all of which we’ll outline!

Here are 6 benefits of having a credit manager!

1. RECOVER FROM DEBT

One of the benefits of working with a credit manager is being able to recover from debt. Because many people struggle with repaying debt, a credit manager can implement several strategies to prevent you from harming your credit score.

Credit managers often do this by helping you determine which debts are the most important. For example, those with higher interest rates are usually the ones they recommend to target because you can save money by quickly repaying them.

Aside from that, they’ll let you know when you’ll be secure enough to start borrowing again. If you’re looking to purchase a house or vehicle with a loan, it’s best to work with them beforehand to ensure your credit is good enough.

2. PLAN MORE EFFECTIVELY

Learning how to raise your credit isn’t difficult, but coming up with a financial plan is. Credit managers not only help their clients recover from debt but also teach them about budgeting and saving.

With a credit manager, you can come up with a thorough plan towards any goal. For example, if you want to buy a house, they can help you figure out how much money to set aside over a period. Providing that you follow the plan, you shouldn’t have a problem accomplishing any goal.

Depending on your income, debt, and credit score, they can tell you how soon you can acquire something. This will further help you put together a plan that’ll let you buy the things you want while also saving.

3. REDUCE EXPENSES

People often overlook credit managers’ abilities to help them reduce expenses. However, a credit manager can act similar to an accountant and help you figure out what you’re spending too much money on.

Many expenses that people have are either unnecessary or have cheaper alternatives. If you can’t eliminate something, a credit manager will find something to substitute that allows you to save more.

Their priority is ensuring you know how to raise your credit, which involves saving and tackling debt. To do this, they’ll want you to have as much money as possible.

4. BUILD CREDIT SCORE

When you want to know how to get credit help, you should start working with a credit manager immediately. Increasing a credit score is simple, so you won’t have a problem learning how to.

The first thing a credit manager will do is go over your income and debts. This will give them enough info to determine how you can approach your debt situation.

In many cases, they’ll have you focus on your loan with the highest debt. This is because paying it off would help you pay less than you would if it continued building interest.

While paying the main loan off, a credit manager will have you make minimum payments towards your other loans. This is crucial because it’ll prevent your score from decreasing due to missed payments.

Some credit managers advise their clients to get credit-building cards after they’ve paid off their debts. These cards are often secured by having borrowers deposit their line of credit. For example, depositing $500 would allow you to spend up to $500.

5. ACQUIRE BETTER LOANS

After learning how to get credit help, a credit manager will help you find loans with better terms. Of course, this requires having a good credit score, which you’ll have already taken care of.

More favorable loans often have lower interest rates and allow people to borrow more. When you want to get a larger loan for something like a house or vehicle, it’s best to wait until your score is high to avoid the interest rates.

If you inform your credit mentor that you’re looking for a specific loan, they’ll help you find the best one that suits you.

6. DISPUTE CREDIT REPORT ERRORS

Another problem that many people have when trying to build credit is understanding how to dispute a credit report. Getting an error on a credit report isn’t common, but it may negatively affect your score unless you dispute it as quickly as possible.

Credit managers can do everything for you to ensure that the error is disputed properly. They’ll provide any necessary documents and explain why it’s an error.

Shortly after correcting it, you should see your credit report reflect the change. Depending on where you go to get a report, you may be able to get a second one without paying, such as with Annual Credit Report. You can also ask your credit manager for recommendations.

CONSIDER WORKING WITH A CREDIT MANAGER TODAY

After reading this article, you no longer need to ask, “what is a credit mentor?” With someone like a credit manager by your side, you’ll have no problem building credit within a few months.

We encourage anyone struggling to build credit to hire a credit manager as soon as possible. The quicker you are to tackle debts, the easier it’ll be to raise your score.

Check out our other articles to learn more about a variety of topics!