The Do’s And Don’ts Of Credit Repair

Many people believe that credit cannot be repaired once it has been badly damaged, but that is not the truth at all. There are several things that can be done to help your credit rating rise again. While this is true, there are many things that you may have been told are great credit repair tips, yet they may actually have a negative effect. The following article will give you an idea of what you should and should not do when you are working on fixing your credit.

DO get a copy of your credit report so you will know exactly what you are dealing with. Sometimes people assume that there are things on their reports that are not and vice versa. This is also useful since it will give you the opportunity to dispute any information that is not legitimate. Many people have their credit score go up once incorrect information is removed.

DON’T pay any companies that make promises that seem untrue. The reality is that repairing your credit is possible, but it is not something that can be fixed with the help of a magic wand. You may want to fix things so badly that you get yourself involved with a company that is only out to get your money. Live by the doctrine “If it sounds too good to be true, it probably is.”

DO get rid of most of your credit cards. This may seem drastic, but it is a necessary step if you want to get things back to normal. Do not close all of the accounts at once since this can have a negative effect, but definitely cut up the cards and stop using them. It is okay to keep one for emergencies but make sure that this is the only time that you use it.

DON’T ignore the problems with your credit and hope they will go away. The only thing this will do is make your credit situation much worse than it has to be. It may seem like you are in a pit and you cannot get out, but you can by employing the correct methods. Work on it instead of fruitlessly waiting for it to work itself out.

DO call each of your creditors and make a payment agreement with them. Sometimes you can benefit by calling them and letting them know that you are having financial difficulties. Even if they say it is not possible to lower your payments, it will not hurt to try. Most of the time they will be more than receptive to the idea of you paying less since that is better than not paying anything at all.

DON’T apply for a lot of new accounts since people will have to access your credit report in order to make a determination. It is fine if you are looking to buy a home or a vehicle, but you should avoid it as much as possible otherwise. Many people apply for secured lines of credit in order to fix things. They don’t realize that all of these inquiries are making things worse.

DO avoid credit counseling services. This may sound like a bad idea, but the reality is that this shows people that you have the inability to live up to your contracts. It may seem great that you are able to settle things with your creditors, but this service will show up on your credit report and it does not look good at all.

DON’T miss any more payments. This is as simple as it sounds. It is terrible to work so hard to fix things then have setbacks, so make sure that you are careful with your finances. Even if you still have a high balance, things will look more positive for you if your report reflects that you have been making on time payments.

As was stated earlier, it is not very easy to repair credit that has been badly damaged. With that being said, it is important to point out that it is not impossible. Following the advice given here will help you get on the road to financial recovery. It will be a long journey, but you can do it as long as you stick to these rules.

Author: Wallacem