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Avoid These Credit Repair Mistakes

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Credit repair involves removing or correcting inaccurate information from your credit report to provide a fair and complete picture of your finances, taking steps to boost your credit score, and resolving to avoid credit problems in the future. You can do this yourself or hire a company that specializes in credit repair to do it for you. Either path can present opportunities for error. Be sure you know your rights and avoid the 16 mistakes listed below.

Key Takeaways

  • Know your rights under applicable credit laws.
  • Obtain and read your credit reports once a year and look for errors.
  • Only dispute information that you believe is wrong.
  • Keep records of everything and get everything in writing.
  • Avoid disreputable credit repair companies.

Know Your Rights

Several laws protect consumers when it comes to credit. These include the Credit Repair Organizations Act (CROA); the Fair Credit Reporting Act (FCRA); the Fair and Accurate Credit Transactions Act (FACTA) of 2003; and the Fair Debt Collections Practices Act (FDCPA) of 2010. Among other things, these laws stipulate that:

  • You must have free access to your credit reports once a year.
  • You may dispute errors on your credit reports, and credit agencies must correct them if proved.
  • You must be informed when your credit report has been used to, for example, deny you a loan.
  • You must give permission for your credit information to be provided to someone else.
  • The amount of time negative information remains on your reports is regulated.
  • Creditors must follow rules when it comes to contacting you about debt, including staying within certain hours and not making threats or informing family members about your debt.
  • Credit repair agencies cannot lie to your creditors or encourage you to lie, alter your identity, or misrepresent their services. They also must provide you with a contract and a three-day cooling off period. If a firm doesn’t adhere to any of these standards, then there’s a chance you’re dealing with a scammer, instead of one of the best credit repair companies.

Knowing your rights is only part of the picture. You must also avoid making mistakes along the way. Here is what to watch for.

Mistake #1: Failing to Check Credit Reports

Step one in repairing your credit involves knowing what your credit reports say. If you have never requested your reports, or it has been at least 12 months since you last looked them over, you can check your reports by going to the Federal Trade Commission (FTC) Free Credit Reports page and following directions. Other websites sell access to credit reports and a few even offer select reports for free, but the FTC gateway ensures you get the reports guaranteed by the FCRA. Read all three reports carefully, looking for information you believe to be false or inaccurate.

Mistake #2: Procrastinating

Don’t put off credit repair. If you discover negative information on any of your credit reports and believe it to be wrong, you should try to correct the record as soon as possible. Although most negative information comes off after seven years, that’s a long time to live with an inaccurate credit report.

Mistake #3: Avoiding Credit Education

Whether you are attempting to remove or correct bad information on your credit reports or simply trying to reduce debt and forge a new financial path forward, the more you know, the better. This includes knowing how to dispute wrong information in your credit report as well as knowing you probably need to pay down high-interest credit card debt before installment loans.

Mistake #4: Not Keeping Documentation

Complete and accurate documentation regarding all debt is essential to disputing wrong information, protecting your rights, and keeping spending within parameters that make sense for you. You should know the penalties for missing a payment as well as the optimum conditions for requesting a credit increase. Be able to show payments were made on time and always be prepared to back up your claims with paperwork.

Mistake #5: Disputing Too Much

Obviously, you should only dispute things you honestly believe are inaccurate. Some credit repair companies like to dispute everything in the hope that one or two things “stick.” The problem is that credit bureaus are not likely to take such an approach seriously. Even if they do, you could end up removing positive information that helps your credit score. It’s also important to take your dispute to the right entity. In most cases that will be the credit agency, not the creditor.

Mistake #6: Disputing Online

All three credit agencies provide online dispute systems, but critics say using those systems may rob you of some of your rights under FCRA. The online systems allow credit agencies to avoid doing things—for example, forwarding your information to creditors, providing you with written responses to your disputes, and providing you with the “method of verification” of the item you disputed. Instead, you should file your dispute using paper “hard copies” and certified snail mail, critics say.

Mistake #7: Disputing with Boilerplate Language

Along with not disputing “everything” it’s also wise to individualize the language in your dispute filing to avoid having the credit agency “red flag” your paperwork for being repetitive. Instead, use the template as a guide and make sure the words are your own.

Mistake #8: Sending Uncertified Mail

Any paperwork you send to a credit agency, collection agency, or creditor should be sent certified mail with return receipt requested. This provides you with the documentation mentioned above as well as proof the agency received your letter. The same “proof” rule applies to any communication to you from any of the above entities. Do not verbally agree to anything unless it is also in writing. That way you will know what the agency has agreed to and, more important, will have written proof.

Mistake #9: Falsifying Documents

Offering false and misleading statements or written communication isn’t just illegal for creditors and credit agencies. If you lie, chances are you will be prosecuted. Documentation you provide as part of a dispute or question about an issue of credit must be accurate. You need not elaborate, but what you say must be true.

Mistake #10: Transferring Credit Card Balances

Transferring a balance from one credit card to another is not a good credit repair tactic. You will still owe the same amount and in most cases the balance transfer fees will outweigh whatever interest advantage you may get. The same applies to consolidating debt onto a single credit card, especially if you close the other cards, thereby losing any available credit they would show.

Mistake #11: Missing Payments

Another credit repair mistake some people make happens when they miss payments on some accounts to make payments—or larger payments—on others. The only exception might be if the account in question has either already been charged off or gone to collections. If choosing between paying a collection account and one that is current, always pay the current account to keep it that way.

Mistake #12: Canceling Credit Card Accounts

Since 35% of your credit score is based on your credit history, it’s seldom a good idea to close a credit account. It may be much better to keep a small balance and pay it off monthly instead of canceling the account or cutting up the card. It will take discipline to keep from going into debt, but your credit score will be higher for the effort.

Mistake #13: Applying for New Credit

If you’re trying to repair your credit, the chances of being approved for additional credit, especially unsecured credit, is not great. You could be wasting a hard inquiry that ends up lowering your credit score right at the time you’re trying to raise it. It’s best to save applying for new credit for later—after your credit has been repaired.

Mistake #14: Paying Debt Collectors

It may sound counterintuitive, but paying a debt collector can cause unforeseen damage. If, for example, you have old debt that has outlived the statute of limitations, making a payment on that debt could update the debt. If you are unsure about the validity or status of the debt, it’s important not to pay until and unless the debt collector proves the debt is legit and current. It’s important to remember that debt collectors are expert at trying to frighten you into paying up. Don’t pay based on anything verbal. Written communication is the only acceptable form of communication.

Mistake #15: Hiring a Shady Credit Repair Company

Some people don’t feel they have the time or expertise to do their own credit repair. For those people, hiring a credit repair company can be beneficial and convenient although the convenience comes at a price. According to Credit Karma, the cost of professional credit repair services could include a flat fee or “per deletion” charge of $35 or more. Total cost could go up to $750 or more. Some companies charge a monthly fee ranging from $50 to $130 or more. Only you can decide if the cost of paying someone else to repair your credit is worth it. It’s worth noting that credit repair companies in general don’t have a great reputation, so review your rights above and as spelled out in the CROA.

Mistake #16: Filing for Bankruptcy

Some people think they need a fresh start and decide to “repair” their credit by filing for bankruptcy. Unfortunately, bankruptcy will not improve your credit rating, it will remain on your credit report for up to 10 years, and even when it’s gone, many lenders will ask if you’ve ever filed for bankruptcy as part of the loan application process and use that as a reason for not approving a loan.

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Credit Repair Companies

DIY Credit Repair Guide: 7 Quick Steps to Fixing Your Credit Score

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diy credit repair guide

Having bad credit can set you up for a multitude of challenges, from loan approval to a renter’s agreement on your apartment. Understanding how your credit score works is the first step in determining how to fix your credit.

Keep your credit card in the wallet for now. We’ve done the research so you can focus on fixing your credit and hitting those financial goals on your dream list.

Getting Started With DIY Credit Repair guide

Dealing with credit bureaus is a necessary evil for most people residing in the United States. For younger persons in their 20s and early 30s, their experience is sometimes lacking, leading to additional difficulties.

Do you have an outstanding credit card balance? Don’t worry; we’ve all been there. A free credit report is usually the first step when you’re new to the process. You’ll want to understand the ins and outs of credit reports, especially if your credit score needs a boost.

Get A Free Credit Report Here

What Is a Credit Score?

A Fico score is an important number when it comes to managing your personal finances as an adult. 

This digit ranges between 300 and 850. It provides a picture of you, as a consumer, and how you spend your money. If you’ve managed to pay your bills on time and have responsible spending habits, your score will be just fine.

It’s all based upon your history: how much debt you have, repayment scenarios, number of accounts, and more. This is what lenders use to determine if you qualify for a mortgage or car loan. These are just two examples of many where credit counts. 

The higher the score, the more likely you are to make timely and appropriate payments, or that’s how they see it, at least.

How Does a Poor Credit Score Affect You?

Is your credit score above 670 or so? This is optimal. Anything below that number is a moderate result (unless you stoop even lower than 580). If you fall into the latter category, that means you have poor credit. 

Credit reporting companies can make life more difficult than it needs to be. Sour credit history may affect you in numerous ways, including but not limited to:

  • High-risk label: You could be labeled high risk by lenders, which means your chance to qualify for loans will be quite slim.
  • Insurance premiums: Poor credit may mean your insurance premiums are higher than they need to be.
  • Employment: Some employers might deny you a job based on this, as it could indicate a lack of responsibility in their eyes.
  • Interest rates: You may face higher interest rates because of it.

Fix Your Credit Here

Why Pursue Credit Repair?

Everything listed above makes for good reason to pursue credit repair. Bad credit can put a damper on big financial decisions and keep you in a ditch of debt, which you’re probably trying to get rid of in the first place.

Buying a House With Bad Credit

If your credit history drops below that moderate category of approximately 580, this will affect your ability to buy a house. This doesn’t mean it’ll be impossible, but it could come with a higher interest rate or other stipulations that can actually worsen your original financial situation.

How To Repair Your Credit: Step by Step

The best news is that it’s possible to fix your credit. It takes some know-how, but we’ve got you covered.

Fix Your Credit Online

1. Determine Where You Stand

It’s a simple process to determine your score. Credit reports are numerous, and you can also snag a free credit report online.

Get a Credit Report for Free

You’ll find plenty of options for a free report when you open your browser. Some websites and credit bureaus offer credit reports from two to three companies, so you can see how they compare.

Know Your Credit Score

Now that you understand what the numbers mean, you’ll have a good idea of your credit picture when your report is complete.

Get a Copy of Your Report

In most cases, the company will email your report to you. It’s important to make a hard copy, though, in case you need to meet with credit counselors or a credit repair company.

2. Know What To Look for on Your Report

Your credit report will contain more than just the number.

What Information Is Displayed on a Credit Report?

Most credit reports feature the following categories.

  • Payment history: Do you have late or incomplete payments?
  • Credit utilization: The ratio of outstanding credit card balances to your limits.
  • Types of credit: This includes open accounts, installments, and revolving.
  • Credit inquiries: When an outsider checks your credit report, like an employer.
  • Length of credit history: How long you’ve had credit.

3. Check For Errors on Your Report

It happens from time to time and usually in the following scenarios: personal information, reporting mistakes, debts from a former spouse, or older debts beyond seven years.

Repair Your Credit By Disputing Errors

The only way to dispute your errors is by contacting the credit report company.

4. Pay Late or Past Due Accounts to Build Your Credit

Improving your credit by paying late or past due accounts is possible. But this could take up to a few months at least to positively affect your credit score. You can’t rely on this method alone for boosting credit overnight.

5. Increase Your Credit Card Limit to Improve Your Credit Score

Higher credit scores are often due to maximum limits on credit cards, indicating that an individual is responsible enough to handle that specific amount.

If you’re not confident in your ability to handle your finances just yet, avoid this route. You could end up in a worse place, and that added stress isn’t worth it.

6. Pay New Credit Accounts First to Fix Bad Credit

Some professionals recommend that you pay new or high-interest accounts first to fix bad credit. This might help you increase the length of your credit, improving your score over time.

7. Don’t Apply for a New Credit Card

Applying for a new credit card to increase your score isn’t the best idea. It shows desperation on your part, or at the least that you’re in a financial emergency. There are other, more constructive ways to improve your credit.

8. Pay Balances on Time Going Forward

Need an excellent tip for diy credit repair guide? Timely payments are one of the most surefire ways to boost credit. If you’re unable to make this happen, you’ll want to call the companies responsible for the particular payment lines you’re struggling to pay. That way, they can advise you on the best scenario to avoid disrupting your credit even further.

This could include a new repayment plan, for example.

DIY Credit Repair Guide and Tips

Those that are new to the game of credit repair will have questions, and here we cover the most common topics to round out the critical steps you need to take.

DIY Credit Repair Guide versus a Credit Repair Company

Fixing your credit yourself versus contacting a company or counselor is possible with a little know-how. Options include making payments on time, paying off your high-interest installments first, and minimizing lines of credit until you’re in a better place.

Other ways to help improve your credit include:

  • Limit hard inquiries: Mortgages, credit cards, or loans qualify as “hard inquiries” or “hard pulls” and indicate financial trouble. Keep these at a minimum.
  • Use auto-payments: You won’t have to worry about missing payments. This system can help you improve your spending habits, too.
  • Keep old accounts open: These boost your credit as it shows a long history on your report.
  • Stay on top of your credit report: Most bureaus recommend running a credit report once per year. Keep your files and note your progress.

Get A Free Credit Evaluation Here


What Is the Credit Repair Organizations Act?

The CROA, or Credit Repair Organizations Act, protects you from companies trying to misguide you into a poor financial decision.

It prohibits businesses from using misleading or untrue representations of a credit agreement. The act also requires clear disclosures from credit repair businesses, so you’re not taken advantage of there, either.

When Do Debt Collection Agencies Get Involved?

diy credit repair guide

Typically, diy credit repair guide recommends anywhere between three and six months of nonpayments for a debt collection agency to get involved. This depends on the stipulations laid out by the lenders and creditors, but your account has to be listed as “very delinquent” or something similar first.

How Does “Pay-for-Delete” work?

“Pay for delete” is a practice used by debt collection companies. It’s when your collection amount is erased from your credit report because you made the payment in full.

How Long Does It Take to Repair Credit?

How long it takes to repair credit depends on your financial state and what’s involved. Issues like disputes and errors may take three to six months to get resolved.

Other outstanding credit issues can take years to clear. Seven years is a popular marker for credit reports because this is the length of time required for credit details to be wiped clean from your report.

Recap on DIY credit repair guide

Credit repair is possible. The most important factor is understanding your score and increasing it for a better financial future. Take advantage of free reports and make your timely payments. Auto payments help, as does spending within your means. The best credit repair companies can help you fix your credit score.

Diy credit repair guide Final Thoughts

It’s normal to worry about your Fico score and credit bureaus, given all the facets of life this seemingly minor number can affect. A credit card, in and of itself, isn’t a bad thing, but poor spending habits can make it a beast of a burden.

Repair your credit yourself by making all your payments on time, keeping old accounts open, and checking your score at least once per year. Contact a professional if you have any doubts; that’s why they’re there.

Click Here to Fix Your Credit

The reviews and statements published here are those of the sponsor and do not necessarily reflect the official policy, position or views of Observer. 

How to Fix Your Credit: 7 Ways to Fix Your Bad Credit Score for Free (Credit Repair Guide)

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Introducing Credit Sweeps, a credit repair company that eliminates bad credit and provides funding for business growth – Press Release

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Credit Sweeps is a credit repair company based in Texas that is proficient in erasing bad credit accumulated from terrible financial decisions whilst providing its clients with first-class funding opportunities for business or personal growth.

Headed by Jose M. Garcia, Credit Sweeps provides a unique credit repairs solution to the marketplace, with the ability to remove any and all negative derogatory activity across all 3 bureaus. The company has an efficient and effective process that provides proven results 6 -12x faster than other traditional credit repair companies. Jose M. Garcia understands how difficult it is to start a business on the shaky foundations of a bad credit score, hence he wants to provide a definitive solution through credit repair.

Speaking about their services, Jose M. Garcia said: “At Credit Sweeps, we understand that you want results and you want them as fast as possible. This is why we have a 100% satisfaction commitment with all of our customers. We will help you erase negative activity from your credit until you are fully satisfied with the result.”

Credit Sweeps offers two main Done-For-You services: “Credit Wipe”, designed with the purpose to remove any and all negative activity from the clients’ credit report in an average of 90 days, and “Inquiry Wipe”, a service that removes all hard inquiries from clients’ credit report that are not connected to open accounts. The company usually sees results in the first 30 to 45 days. However, results have been achieved as quickly as 10 days on TransUnion, Equifax, and 24 hours on Experian. Every credit file is different and time frames vary greatly on the amount of negative activity present.

One of Credit Sweeps’ biggest successes as a business in 2020 was partnering with top credit guru Reuben De Leon. Jose M. Garcia and his team’s success for their business comes from using unique techniques and strategies that no one else is using, being committed to their clients, and the results speak for themselves.

Credit Sweeps‘ major services revolve around the Rio Grande Valley in the South of Texas, Houston, Texas; Detroit, Michigan; Los Angeles, California; Miami, Florida; Denver, Colorado; Memphis, Tennessee; Louisville, Kentucky. However, as the company expands, massive growth is expected on its online client base nationwide that entails the company will soon have a presence in major states in the country.

Media Contact
Company Name: Credit Sweeps
Contact Person: Jose M. Garcia
Email: Send Email
Country: United States
Website: www.creditsweeps.org



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Are the Best Credit Repair Companies Really Worth the Money?

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The state of your credit report and score can affect your life in many ways. Those who have a good credit history and high credit score can look forward to a brighter financial future and many benefits. However, those who have a poor credit history and low credit score will often suffer in many ways when it comes to their financial futures.

With this in mind, anyone who has damaged credit and a low credit score needs to try and work on this in order to get back on track. While it is not an easy task, it is possible to improve your credit and clean up your report, and this can then have a huge positive impact on your life and finances. However, some people do not have the knowledge, time, or confidence to do this themselves, so they turn to credit repair companies for assistance. If this is something you are considering, you may be wondering whether the best credit repair companies are worth the money. We will discuss this in more detail in this article.

Why Are the Best Credit Repair Companies a Good Solution?

One thing you need to remember is that not all credit repair companies are equal. Some have more experience and a solid reputation as well as a great track record while others do not. This is why you need to ensure you find the best providers with an excellent reputation and proven track record before you make any decisions. If you find the right provider, it can be well worth the money because they can benefit you in many ways. This includes:

Making the Process Less Stressful

Dealing with a bad credit report and score can be very stressful, and this stress can be heightened by trying to sort out the issues yourself with no real knowledge of what you need to do. In fact, some people who decide to sort out their own credit report issues end up giving up because it is so stressful and often too time-consuming for them. Teams from the best credit repair providers will already have the expertise and knowledge they need to deal with these issues, and this means far less stress for you.

Better Chance of Desired Results

Naturally, when your credit score is low, you want to do all you can to get back on track. With the help of credit repair experts, you have a far better chance of achieving the desired results and improving your credit so that you can then look forward to a better financial future. Experienced firms will know exactly what they need to do in order to improve your credit and get you back on track. So, you can look forward to a far better chance of success when it comes to getting your credit back on course.

Quicker and More Efficient Process

When people are working on improving their credit, they often want instant results. Well, this is not the way in which the process works, and it can take some time to get back on track. However, using an expert do help you with your credit score can make it much quicker compared to trying to handle it all yourself with little or no experience or knowledge of what to do. Using a good, reputable company can make the whole process easier and more efficient, so you can start to reap the rewards with greater speed.

Saving You Time

Sorting out your credit report and score can be a time-consuming process, and if you have a hectic schedule and lots of commitments, you may struggle to find the time to get it all sorted out. By using a reputable provider, it can save you a huge amount of time because the experts will do all the legwork for you. So, you can look forward to improving your credit without having to get stressed because you have no time to deal with the issues and process yourself.

Check the Reputation and Experience Levels of Providers

In summary, it can be well worth investing in using a credit repair company as long as you find a reputable one. It is vital that you take the time to explore the experience levels of the provider as well as to learn more about their reputation and success rates. Look at their website, check online reviews from other people, and look at accreditation sites to get a better idea of the suitability of the provider before you make any commitment.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes



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