Are you finally thinking about repairing your credit? When your credit is bad, it can hold you back in many different areas of life.
You’ll have a tough time getting an apartment, a car, a mortgage, credit cards, and any other type of credit that you can think of. If you’re ready to take this challenge and go through the credit repair process, we’d like to share three credit repair mistakes that newbies have a tendency to make.
To fix your credit and avoid making costly errors, please use the guidance that we are about to share with you below.
Disputing Every Negative Error on Your Credit Report at the Same Time
Even though you want to repair your credit immediately and get everything done right away, you’ll actually have a tough time achieving your goals if you attempt to remove every negative issue on your credit report at the same time.
Why is this a mistake? Well, it’s a mistake because you’re going to set off a major red flag with all three credit bureaus if you begin to contact them and tell them about all of the errors on your report.
You’d be much better off attempting to fix one or two of them at a time.
This seems a lot more believable to the credit bureaus and your creditors, and it will make your repairs go a lot smoother because they will not immediately dismiss you and ignore your disputes. Also, if you dispute your entire credit report you are actually making a huge mistake. Some of the accounts on your report are positive, so you need them to help boost your score and make you look like a good credit risk.
- Canceling Your Credit Card Accounts
If you’ve managed to get yourself in some kind of credit card trouble, your immediate reaction would be to cancel your credit card accounts so that you cannot screw them up any further.
Believe it or not, this is not the best way to handle your credit issues. Why? Truth be told, closing your credit card is not going to be good for your credit score.
By having a small balance on your credit cards staying 30% below your maximum available credit, you are actually proving to the credit card companies that you are a good credit risk.
This is going to help boost your credit score big time and it really adds valuable points to your score, which is obviously what you’re attempting to do, so do not make this popular credit repair mistake.
- Choosing to Pay Certain Credit Card Bills and Ignoring Others
It’s certainly important to prioritize your credit card payments, because otherwise you’re going to have a bad credit score if you. Unfortunately, some people would make the mistake of only paying certain credit cards and ignoring the others.
If you really intend to get your credit to improve, it’s never wise to miss any payments. And it’s never a good idea to skip certain credit cards because they are going to have a negative impact on your overall score.
And if you’re not making all of your payments, you’re never going to be able to repair your credit anyway. Because the cards you aren’t paying are going to eventually get charged-off, go into collections, and this will have a severe negative impact on your score.
According to CreditRepair.Company, experts on a reputable and legitimate credit repair companies, “…the credit repair company should urge you to pay down your credit card debt, make a budget, cut unnecessary expenses and do as much as possible on your own while they work on removing negative items and negotiating settlements.”
Please take some time to avoid making these costly credit repair mistakes in the future.