Taking steps to fix your credit can be helpful, especially if you’re planning on making a big purchase, such as a house or car. Improving your credit can also help you get better rates on insurance. When you decide to focus on repairing your credit, ensure you’re doing it the right way. Making mistakes in credit repair can be costly. The following are some of the common mistakes you should avoid making:
1. Ignoring Your Credit Reports
You’re entitled to get a free copy of your credit report from each of the three major credit bureaus, which include TransUnion, Experian, and Equifax, each year. You can access these reports on the Federal Trade Commission’s website.
Looking over these reports is where you should start when you want to fix your credit. These reports give you a chance to look for and report errors that are affecting your credit. A reliable credit repair specialist can help you find errors on these reports and work on removing them.
2. Procrastinating on Credit Repair
Delaying credit repair can worsen your credit or stop it from improving, such as when you have harmful errors on one or more credit reports. These errors can stay on your reports for up to seven years.
The sooner you file credit disputes and clean up your credit reports, the sooner your credit can improve. A credit repair company can help you get started on fixing your credit.
3. Not Sending Certified Mail
When you fill out paperwork to dispute a credit error or when you’re corresponding with collection agencies or creditors, always send it certified. Sending uncertified mail means you won’t have proof that the creditor, collection agency, or credit bureau received your paperwork. This can cause delays in having your credit fixed. Working with a dependable credit repair company helps ensure you handle paperwork correctly.
4. Closing Credit Card Accounts
You might think that closing accounts can give your credit a boost. However, this can end up lowering your credit score. Closing accounts can harm your credit history, which makes up a third of your credit score. Credit repair specialists can help you figure out how to handle your credit card accounts, including whether or not to close any.
5. Paying Old Debts
Paying off debts past the statute of limitations in your state might restart those debts. If you’re only making a partial payment on them, you could find yourself back on the hook for the total amount. A credit repair company can go over all of your debts with you and guide you when it comes to handling older debts.
If you need help fixing up your credit, we’re here to help. Please contact Key Credit Repair for more information on our services or schedule a free consultation with our credit repair experts.