Do’s & Dont’s Of Credit Repair
Credit damage can happen for a variety of reasons, such as late payments on credit cards, missing a loan payment, or suffering identity theft. The unexpected or unpreventable sometimes happens. If you’ve found yourself with credit struggles, you aren’t alone. Millions of other Americans find difficulty being approved for credit or loans or, if approved, offered unattractive terms. The good news is you can fix your credit. It takes a bit of work but can be done, especially with credit help. When committing to credit repair, here are top dos and don’ts.
Do: Check Your Credit Report
If you were denied credit or otherwise determined to have poor credit, don’t take this denial at face value. Check your credit report and ensure it contains accurate information. All consumers are entitled to a report from each of the primary credit reporting agencies (Experian, Equifax, and TransUnion). Errors are more common than you’d think and should be disputed. A professional credit restoration company can help you navigate this process.
Don’t: Ignore Bills
Even if you think you can’t afford to make a payment, see if you can budget monthly payments. If your financial situation prevents you from making payments, the lender should be contacted to see if you can go on a payment plan or other arrangement. Many will work with you if you communicate with them.
Do: Take Steps Towards Credit Repair
If you’ve checked your credit report and all seems in order, it’s a good idea to carefully look at your spending situation. This helps determine what is contributing to a decreased credit score.
- If you have the funds but forget to make payments, set up automatic bill pay.
- Use cash or debit to make purchases to avoid accumulating more debt.
- Consider pursuing credit help so you can evaluate your situation and set up a realistic goal to achieve a healthy credit score.
Talking with the experts can help you get back on track and, ultimately, reach financial freedom.
Don’t: Close All Credit Card Accounts
Many people seeking to pay down debt will close credit cards to avoid using them. Realistically, this can negatively impact a credit score, especially if older accounts are closed. Instead, continue to pay down debt and lock away the cards (for now).
Do: Be Patient
Repaired credit doesn’t happen overnight, however, a commitment to a feasible plan will make it happen. It’s important to know it takes time for good credit behaviors to reflect in scores. After about 30-60 days of staying on track, you should start to see results.
Don’t: Transfer Debt from One Card to Another
Transferring debt from one credit card to another to avoid payments only makes things worse. It might offer a temporary reprieve but will catch up with you over time, especially once fees begin to kick in.
Don’t despair if your credit isn’t as strong as you want. There is help! If you’d like to learn more about how Key Credit Repair can help you find a solution that will turn your credit situation around, please contact us today for a free consultation.