Most Important Credit Repair Mistakes To Be Avoided

Overview

In case, you have a bad credit score and you are in the process of trying to credit repair it, there are a few points that you should keep in mind. In such a scenario, there are few priority steps which you need to take.

Please keep in mind the below mentioned 5 points and ensure to avoid them

1. Not taking action straight away: The biggest mistake any consumer could do is putting off his credit repair indefinitely. Never commit the error of neglecting your negative credit score. It is true that the negative scores are set off after a few years. But still, you need to take necessary steps to repair your credit standings.
2.Not checking your credit report: Even before you begin you correct your credit standing, check your credit report completely. Only your credit report can tell you which items you need to focus on improving your credit scores. Figuring out how to repair your credit scores will be in vain without your credit report. So, firstly, have your credit report handy.
3. Disputing too many items: You have to be tactful when you send a dispute for the negative ratings. Two problems arise when you dispute your negative credit ratings. If dispute too many items in your ratings, the credit bureau might take your request to be frivolous and thus the dispute will be going against you. Another point is that there will always be some positive records in your credit report. Raising a dispute on them might further reduce your score.
4.Cancelling credit card accounts: One major mistake which many of the consumers do is to close their credit card accounts. Never commit this kind of mistake. Nobody realises that this can affect your credit score badly, especially when you have had a long standing account, or your credit card is old. Rethink before you cancel your credit card. Cancelling will never improve your credit scores.
5. Missing some credit card payments in lieu of others: It is definitely good to prioritize payments. However, you will have to be double sure that you do not neglect one payment for the sake of another. Never miss or forgo payments if you are looking out to improve your credit scores. Missing a payment can further bring your credit score down. Any account that has already gone into the collection can be missed out. There is no harm in doing that. Also, if you need to choose between collection account and a current outstanding account, you should choose the current outstanding account.

Apart from the above points it will be good to keep in mind some additional points
•    Never opt for balance transfers.
•    Do not hire a credit repair company.
•    Send all communications to the lending agency, credit bureau etc. without requesting a return receipt or a read receipt. All correspondence should be sent via certified mail.
Keeping the above points in consideration can help you repair or improve your credit ratings faster. Avoiding these mistakes can help you restore to better numbers easily.

Updated: January 19, 2017 — 4:04 pm

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