The Dos and Don’ts of Credit Repair

Having a poor credit score warrants immediate action with effective strategies to rectify the situation. Your low credit score can be the reason for your rejected loan application. There can be various reasons for a low credit score. But irrespective of the reason, poor credit can make your life difficult. Repairing credit is, however, possible using a series of steps that work.

But before you take any step in this regard, consider the dos and don’ts credit repair.

The Dos

Do check and analyze your credit reports

Before you fix your credit, it is important to understand the numbers on your credit reports. You need to see and understand what factors could be lowering your credit. You cannot expect to improve your credit without fully understanding the numbers and the factors impacting it on your reports.

Checking and analyzing credit reports is especially essential if you suspect errors on your report. Yes, poor credit can be a result of wrongful entries in your reports. For example, inaccurate entries or incorrect information about bill payments can lower your credit score.

You can request a copy of your credit reports from all three credit reporting agencies. If you need expert help in analyzing the report and identify the errors, it can be a good idea to hire a credit repair company Miami to help you. But ensure that you only work with reputed companies with proven experience in helping people repair their credit.

In order to find such companies in your area, you can conduct online searches using keywords mentioning your location and the requirement. For instance, use credit repair in Miami FL if you need such a company in this city.

Do dispute errors on your credit reports

Once you have identified the errors in your credit report, it is time to dispute them. You can write a letter to each of the credit bureaus requesting them to remove the erroneous items from your reports. You may need to provide proofs to validate your claim along with your letters. You will need to do this for each of the errors on your credit reports.

The process of disputing errors can take time, as the credit bureaus will consider your request. They will then check your reports. Your initial request might also get rejected. In such cases, you will need to write to them again. Again, there are credit repair companies that can dispute errors on your behalf.

Do make timely payments

When you are taking the time to repair your credit, it is important to continue to pay your bills and loan installments on time. You need to be extremely mindful of not doing anything that could further lower your credit while you are taking the steps to repair it.

The Don’ts

Don’t close your credit cards

Credit cards play a big role in determining a person’s credit scores. Continue to use your credit cards while ensuring that you are using only 30 percent or less than this figure of the available credit in each card.

The oldest of your credit cards can add to your credit score. So, ensure that you pay the minimum amount at least on it and continue to use it. If you don’t have any credit card, open one. You may be able to get a free or secured card depending on your score. But don’t open several new accounts at the same time as it can lower your score.

Don’t neglect any bills

Collection agencies can report delinquent accounts (be it for utility bills or anything else) to the credit bureaus. Such reporting can negatively impact your credit score. So, ensure that you continue to pay all your bills in a timely manner along with your only credit card bills.

Don’t expect overnight results

It is important to be realistic when repairing your credit. It is possible to raise your credit score. But don’t expect instant results. Stay away from experts claiming to repair your credit overnight! Disputing errors and timely bill payments are effective steps that can make a positive difference to your credit report. But it can be some weeks and even months before you will begin to see any positive results.