Credit repair doesn’t need to be difficult, but when you’re just starting out it can feel like there’s no way that you will be able to take care of your credit. What you have to keep in mind is that just because you want to get out of credit quickly doesn’t mean that you will — but at the same time, it doesn’t mean that you won’t be able to someday reach debt freedom. The truth of the matter is that you will need to make sure that you can reach the subject of credit repair without losing your cool. You might feel like there’s no way that you can see success in this matter, but that’s not the attitude that you want to hold onto.
One thing that you have to remember is that if you can really avoid making mistakes with credit repair, you won’t have to worry about whether or not you’re going to be successful. You won’t have to worry about anything because once you overcome the mistakes, you will clear the way for things to turn successful in your quest for better credit.
Now then, what type of mistakes are we talking about? There are really three that make a difference:
First and foremost, the biggest mistake that people make is that they try to dispute everything on their credit report. Unfortunately, this method gets bragged on in a lot of financial forums, because people see short term results with it. That’s because there is a freeze on your credit report as the claims are verified or thrown out. This can raise your credit score, but any increase is only going to be temporary. Your credit score will go down once the results come back from the verification phase.
From here, another mistake that you want to avoid is that you don’t want to give up too much information. When you’re talking with collection agencies, you want to make sure that you don’t accidentally take responsibility for a debt that’s not really yours. In addition, if a debt is past the statute of limitations, the collection agencies can’t collect on it anymore. That debt needs to be removed from your credit report. If you are threatened with a lawsuit, you will want to just relax — after all, if it’s out of the statute of limitations, you will not have to pay that debt any longer. So it’s an empty threat, but if you don’t know that then you will end up paying out money that you don’t have.
Finally, the final mistake that you will want to think about is the accounts that you have. You don’t want to just close an account because you have finished paying off the debt. If it’s a revolving account that can be carried forward, then you will want to push forward slowly. Closing the account will cut you off from the history that you would have had on your credit report. This lowers your credit score, and is a mistake that you will want to avoid.
All things considered, if you follow the tips in this guide, you shouldn’t have any problem repairing your credit in virtually no time at all!