4 Common Credit Repair Errors and How to Avoid Them

Credit score not where it should be?

Well, you’re not alone. Heck, with the total credit card debt in the US sitting at a staggering $820 billion nowadays, this is a struggle most adult Americans can relate to! Thankfully, all is not lost…

With the right approach, you can and will improve the situation. And the process will be ten times easier if you avoid the plethora of common people often make when fixing credit scores! Want some help with the task?

Here are 4 common credit repair errors and how to avoid them.

1. Putting Things Off

We know, there are a hundred things you’d rather be doing than trying to fix your credit. And you might even have some genuine excuses for not getting started.

Stop putting it off though! Too many people fall into the trap of delaying the credit repair process indefinitely. Sure, any negative info on your credit report will disappear after 7 years. But that’s still a helluva long time for bad credit to cause trouble.

2. Challenging Everything On Your Report

Another common mistake people make is disputing every single claim on their credit report. Diligence is a virtue, but going overboard can backfire in this situation.

Why? Firstly, because the credit bureau might label your challenge as frivolous. And second, because taking everything off your report can hinder (rather than help) your credit score.

3. Choosing the Wrong Credit Repair Service

Many time-poor people in your position hire credit repair services to handle things for them. The only problem? Not all of these companies are made equal.

Some promise the world but never deliver the goods. If you take this tack, then, make sure you do your due diligence. Ask for referrals from your loved ones, read online reviews, and be wary of anything that sounds too good to be true.

4. Canceling Accounts and Cutting up Cards

If credit cards got you into this mess, surely closing your credit card account will help solve the problem…right?

Wrong! In fact, the opposite could be true. Closing a credit card can end up damaging your credit score!

Don’t go cutting up your cards either. Those little bits of plastic should be used with caution, but it could be hard to acquire loans and other types of credit without them. Furthermore, being sensible with these cards over time is actually an effective way to rebuild your credit.

Time to Avoid These Credit Repair Errors

Tens of millions of Americans struggle under the weight of bad credit these days. Yet this unfortunate predicament doesn’t have to be permanent! Done right, you can turn the situation around and get your credit into a much better position.

We hope the insights on avoiding common credit repair errors in this post will help you do it. Keep them in mind and you should be able to turn things around much faster. Check out the “Personal Finance” section of our website to learn more about key financial topics like this one today!

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