Avoid These Credit Repair Pitfalls: Learn How to Repair Your Credit
We all know how important having a good credit score is, but what do you do when yours takes a hit? In this post, we’ll discuss how to repair your credit and some of the most important things you should avoid.
Whether you’ve recently checked your credit report and noticed errors or you’re simply looking to build your credit history, this guide will help you understand the best practices for credit repair.
How to Repair Your Credit – Mistakes to Avoid
It is essential to remember that avoiding certain things is just as important as taking action when repairing your credit report. Specifically, there are several necessary things you should avoid doing if you want to improve your credit report.
- Don’t contact creditors directly
People often make the mistake of communicating directly with debt collectors. Debt collectors can be persistent, aggressive, and intimidating, which can lead to individuals agreeing to pay debts that they do not owe. This can cause further harm to their credit score.
- Don’t agree to pay debts you don’t owe
While paying a debt that appears on your credit report, even if it doesn’t belong to you, may seem like the quickest way to remove it from your reports, it isn’t advisable. Often, debt collectors have inaccurate information about the debts they’re trying to collect on, which can lead to mistakes. Before agreeing to pay any debt, do your homework and ensure it is a debt you owe rather than an error.
- Don’t work with a credit repair company without doing research
Many companies promise to help people repair their credit in exchange for a monthly fee. Still, not all of these companies are legitimate. When companies charge a monthly fee, some aren’t motivated to use all the tools at their disposal to remove the items as quickly as possible since they make more money the longer it takes.
Therefore, research your options and consider their payment structure to ensure you choose a company that works with you rather than against you for monetary gain. For instance, Kaydem Credit Help charges a one-time fee for its multi-channel credit repair service. This makes them highly motivated to repair their clients’ credit quickly, and their multi-channel dispute system helps them to achieve this goal.
By researching all your options, you can find a company that will help you adequately rather than leaving your credit reports and wallet in a worse situation than before you started.
- Don’t agree to anything that isn’t in writing
If a debt collector happens to reach out, offering to reduce your debt or forgive it completely, make sure you get everything in writing. Moreover, get in writing that the creditor agrees to report positive information to credit bureaus once payment has been received, ensuring the collection gets removed from your reports.
Without these agreements in writing, debt collectors often give consumers the run-around or make removing negative items from their credit reports more challenging. Therefore, letting the debt collector know that you will pay the agreed-upon amount once you receive written confirmation of the agreement can help you ensure a streamlined process.
- Don’t be impatient when working on credit repair
The simple fact is that repairing your credit takes time and effort, and there are no shortcuts. Whether you opt for a DIY or professional credit repair option, either will take time and dedication. Typically, it will take multiple disputes to remove one item from your credit reports, with one round lasting 30-60 days.
Therefore, be patient, and stay focused on your long-term goals while continuing the credit repair process because it will surely be worth it.
Credit Repair Best Practices
Now that we’ve discussed what not to do when repairing your credit let’s talk about the essential steps you should take to improve your credit report.
Regularly review your credit reports for accuracy
Making it a habit to review your credit reports is one great way to ensure they remain in the best shape possible. When you adopt this habit, you can quickly spot any inaccuracies and work swiftly to have them corrected before they can damage your credit scores.
There are several options for reviewing your credit report. For instance, annualcreditreport.com will give you one copy of your credit report annually from all three major credit bureaus. However, for monthly monitoring, Fund&Grow Credit Services is a great option. With this service, you get 24/7 access to all three of your credit reports, additional information that other credit monitoring services can’t give you, real-time alerts to avoid fraud and identity theft, and more at an unbeatable price.
Regardless of the option you choose, if you notice any inaccuracies, be sure to dispute them with the credit bureau immediately.
Make a plan to pay off debt
Many people experience success with their credit repair efforts. However, too often, people fail to correct the unhealthy habits that caused them to need credit repair in the first place, which only creates a need for further repair efforts.
If you have outstanding debts, prioritize which ones to pay off first. Start by paying off high-interest debt, such as credit card debt, and work your way down. Making a plan for how you can pay off your debt, now and in the future, can help prevent future accounts from falling into collections or earning additional negative remarks on your credit reports.
Don’t be afraid to ask for help
If you’re struggling to make ends meet, contact the organizations that can help you. Talk to a financial or credit counselor for help and guidance to create a plan unique to your situation that will help you achieve your financial goals.
Moreover, if you have tried to have items removed from your credit report, but haven’t seen any success with it, try working with a professional credit repair company. Kaydem Credit Help offers a free consultation to discuss your needs and budget and determine how they can help you. Also, since their prices are based on how much repair your credit reports need, you will only pay for necessary services. Click here to schedule a free consultation today.
Succeed at Repairing Your Credit
It can be difficult to take the initiative and begin working on credit repair, but with a little bit of education, hard work, and determination, you can certainly achieve success. Remember that every step you make towards improving your credit report is beneficial.
Doing something is better than nothing; the sooner you start your credit repair journey, the sooner you will reap the rewards! So, remember to keep track of where you started and celebrate every milestone until you reach your ultimate credit goal!
