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Credit Repair Companies

What You Need to Know to Fix Your Credit

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To hear Steve Weisman tell it, credit repair is part police work and part legal expertise.

“Legitimate credit repair companies,” Weisman says, “are knowledgeable about finding mistakes in credit reports and knowing how to provide evidence sufficient to persuade the credit reporting agencies to remove such false information.”

While it may not qualify as an episode on NCIS, Weisman, who is a noted lawyer, college professor, and one of the country’s leading experts in cybersecurity, identity theft and scams, paints a picture of a process not unlike a criminal investigation. In this case, the “crime” involves damage to you and your credit caused by false information.

Weisman, author of 50 Ways to Protect Your Identity and Your Credit, agreed to an exclusive interview with Investopedia on the subject of credit repair including how to find and hire the right credit repair agency or even whether to attempt to repair your credit on your own.

Defining Credit Repair

Investopedia: Let’s start with the basics. What, exactly, is credit repair?

Weisman: Credit repair is the process by which incorrect negative information on your credit report is removed from your credit report which will result in your credit score going up. A poor credit score can affect your ability to get a loan, rent an apartment, get a job, purchase insurance and more.

It is important to emphasize that no credit repair agency can legally remove accurate negative information from your credit report although there are a number of companies that attempt to do that. By law negative information stays on your credit report for seven years and bankruptcies for ten years.

Investopedia: Is this something credit repair companies only can do or can people repair their credit by removing incorrect information themselves?

Weisman: Credit repair companies help people get inaccurate information removed from their credit reports. They have no more power or authority to do that than individual people do, but some people prefer to have credit repair companies do the work for them.

Initiating Credit Repair

Investopedia: How does the credit repair process start? How do you know you may even be a candidate for credit repair?

Weisman: If you get your credit score and it is not particularly good, you can hire a credit repair company to go through your credit report to determine what was the cause for the low score.

Credit Repair versus Credit Counseling

Investopedia: We often see ads on TV for credit counseling. Is that the same as credit repair or different?

Weisman: Different. Credit counseling agencies attempt to negotiate plans with your creditors to accept reduced payments. Some of these companies are partially funded by the credit card companies themselves who see this as a win-win situation for their customers and themselves.

However, these credit counseling agencies are not credit repair companies. Credit repair companies work for their individual clients who hire them to correct their credit reports and thereby enhance their credit scores.

Investopedia: So, do credit repair companies ever offer credit counseling or vice versa?

Weisman: Credit repair companies do not generally provide credit counseling and vice versa. They each perform separate services.

The Effectiveness of Credit Repair

Investopedia: Does credit repair really work? In other words, are credit repair companies effective at what they do?

Weisman: Legitimate credit repair companies can do a good job of working with the major credit reporting agencies Equifax, Experian and TransUnion, to remove false negative information from your credit report and consequently increase your credit score.

Many credit reports have mistaken information that can reduce your credit score. Among the mistaken information that commonly appears on credit reports are accounts that are behind in payment that do not belong to you, bankruptcies of other people with similar names, misspellings of names that result in someone else’s negative information appearing on your report, negative information that is more than seven years old and debts that cannot be validated and verified.

Investopedia: Do credit repair companies only work with credit reporting agencies or do they sometimes work with creditors or others in the chain?

Weisman: While generally credit repair companies primarily work with credit reporting agencies, they also may work directly with creditors in order to have the creditors change what they report to the credit reporting bureaus. Credit repair companies may work extensively with creditors in order to induce them into correcting inaccurate information reported to the credit reporting bureaus or to negotiate a settlement with the creditor by which the creditor reports to the credit reporting bureaus that particular debts have been paid satisfactorily.

Credit Repair Timeline and Cost

Investopedia: Once the process of credit repair starts, how long does it generally take?

Weisman: How long credit repair takes depends on how much needs to be corrected and how promptly the credit reporting agencies respond to requests to correct the reports.

The law requires credit reporting agencies to investigate claims of mistakes and respond within 30 days of receiving notice by someone trying to fix their credit report, however, sometimes this time period can be extended if the credit reporting agencies require more information or documentation to complete their investigation. It is not unusual for credit repair to take many months to be completed.

Investopedia: What’s the cost of using a credit repair company?

Weisman: Legitimate credit repair companies will typically charge monthly fees of between $79 and $129 and some charge a set- up fee.

Evaluation and Regulation Credit Repair Companies

Investopedia: Who regulates credit repair companies and how does a consumer know if a particular credit repair company is legit?

Weisman: The Federal Trade Commission (FTC) regulates credit repair companies and is the place consumers should go if they have a problem with a credit repair company. In order to determine if a credit repair company is legitimate, you should check with the FTC to see if any complaints or legal actions have been made against them.

Investopedia: What about legislation or laws that protect people from scam credit repair companies?

Weisman: The Credit Repair Organizations Act (CROA) requires credit repair companies to provide you with a written contract that details the services they will perform for you and explain your rights under the law, notify you of a three day right to cancel your contract with the credit repair company, inform you of how long it will take to perform their services and explain in detail the total cost to you.

Most importantly, they cannot charge you before they have completed their services. This is the biggest indication of a scam credit repair company. The scammers generally charge large upfront fees before they perform any services.

Investopedia: Is there anything else about the CROA guidelines people should know?

Weisman: The CROA also provides you with the right to sue in federal court a credit repair company that violates the law and obtain not just compensatory damages (money to compensate you for your losses), but also punitive damages (money to punish and deter the scammers from harming other people).

The End of the Process

Investopedia: How can you tell that your credit has been repaired?

Weisman: You can determine if your credit has been repaired by checking your credit reports and credit scores with each of the three major credit reporting agencies, however, you should regularly follow up checking your credit report and credit scores because sometimes inaccurate information that harms your credit score is removed after being disputed, but reappears on your credit report thereby lowering your score later.

Alternatives to Hiring a Credit Repair Company

Investopedia: Are there alternatives to using a credit repair company?

Weisman: The alternative to using a credit repair company is to do it yourself. Again it is important to note that a credit repair service cannot do anything that you cannot do for yourself.

Some people, however, prefer to have the work done for them rather than do it themselves particularly if they are unfamiliar with the process.

Common Misunderstandings About Credit Repair

Investopedia: What do you think are some common misunderstandings people have about credit repair?

Weisman: I believe that the most misunderstood aspect of the credit repair industry is (the belief) that true negative information can be legitimately removed from your report.

People also believe credit repair companies have more power to take actions to remove negative information from credit reports than individual consumers do. Finally, I don’t think people appreciate how much mistaken information commonly appears on credit reports.

Investopedia: Given all that, are there things credit repair companies do noticeably better than their clients can do on their own?

Weisman: Yes. Legitimate credit repair companies are knowledgeable about finding mistakes in credit reports and knowing how to provide evidence sufficient to persuade the credit reporting agencies to remove such false information.

Final Thoughts

Investopedia: What should people know about credit repair that we didn’t ask?

Weisman: Credit repair is a process that should continue. Even after your credit report has been corrected and your score increased, you should regularly review your credit reports at each of the three credit reporting agencies and check your credit scores regularly so that if a problem arises, you can deal with it in a timely fashion rather than having to deal with it in an emergency such as you have applied for a loan and just learned that your credit score is low.

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Credit Repair Companies

7 Ways to Identify a Credit Repair Scam

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Unfortunately, there are people out there always trying to take advantage of anyone that they can. Whether it is a spam call, phishing email, or even a guy on the street trying to take your money, these scammers are everywhere. Credit repair scams are predicated on taking advantage of already desperate people. People who need their credit fixed in order to get a car or home loan will often look for anyone that can help. While there are a lot of legitimate places that can help, there are also hacks that will take your hard-earned money and not do a thing to help you out. We want to help you avoid these scams, so here are 7 ways to identify and avoid a credit repair scam.

1. Look at the documents you are given

If you are entering into a contract with a credit repair company and they do not give you a document called “Consumer Credit File Rights Under State and Federal Law,” then they are breaking the law. They may not be scamming you, but they are knowingly withholding the information that you have the legal right to carry out any actions on your own to repair your credit that they are also going to do. That is a red flag.

2. Read through the contract

Check to see if there is anything in the contract that stands out as unusual and feel free to ask them, search the internet, etc. about it. In addition, make sure how much you are paying and what actions they will perform on your behalf are spelled out in great detail in the contract. You want to be sure to have a legally binding document that ensures that you are actually getting what you pay for. In addition, make sure the contract is very specific and includes your name and the name of the company you are working with. Finally, ask to see if there is a clause that allows you at least 3 days to decide to cancel.

3. Request an unsigned copy beforehand

You should not have to sign the contract to review it first, so before you even decide to sign it, make sure that you have a copy that you can read through and keep. Then check for the information we have listed in the point above.

4. Look out for the fees

Credit repair agencies are not allowed to charge you any upfront fees by law. Some companies do because they are not aware of this law, but it is still a red flag that you should pay attention to. This combined with not getting a contract may be a very strong sign that you are about to get scammed. Usually, scammers will try to take your money and run with as little proof as possible, which is why upfront fees can be a sign that there is something amiss.

5. The company promises too much

We all want credit repair strategies to work, but there are just some things that credit repair agencies just cannot fix due to their nature. One of these is legitimate debt where the lender has plenty of evidence that the debt is valid. If a company promises to get you out of legitimate debts, they are either scamming you are doing something shady and illegal to get you results. Either way, if a company promises that you will see any type of results or score change, then it is a good idea to avoid them because you can be almost certain that they are breaking the law one way or another.

6. They ask you to create a new identity

As mentioned in the last point, some companies try to do illegal things in order to get you the result that you want. One of these is trying to claim identity theft and to get you to register for a new SSN or EIN. While these companies may not be scams, the results they get will be predicated on major felonies and should definitely be avoided like the plague. Do not give these companies your business and make sure to report them.

7. They ask you to waive your rights

If you are given a document to waive any of your rights, that is a major red flag. Credit repair does not require you to waive any of your rights. Luckily most of them, such as your rights under the CORA, cannot actually be waived, regardless of anything you sign. Usually, companies that engage in these practices will try to take your money and then pressure you and tell you that you have no recourse in getting your money back and they will never deliver any services.

Can you trust any credit repair companies?

Absolutely! While there are people in this world always trying to take advantage of you, there are also legitimate businesses that care about you as a person and as a customer. These companies will be transparent about their services, fees, and your rights throughout the entire process and will not try to pressure you with any aggressive sales tactics. The best agencies for credit repair will not engage in any of the red flags covered in this article, so if you do not see anything on this list in an agency that you are contracting, you can likely rest easy.

If you are interested in finding legitimate credit repair services, we recommend the Best Credit Repair Companies.

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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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Credit Repair Companies

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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