Avoid these Credit Repair Mistakes: Fix your Credit Score in 6 months
Your credit score reflects how likely it is that a potential lender will be willing to lend money to you. Your credit score is found on your credit report, and it ranges from a low of 300 to a high of 900. There’s a lot of information out there about repairing your credit. But, there are also some common mistakes that people make when repairing their credit. Click Here to find the 7 best credit repair companies in Pennsylvania.
This article will explain what your repair mistakes are, how to avoid them, and what you can do instead.
Closing Card Account
One of the widespread mistakes many people make is closing their credit card accounts, thinking that it might improve their credit score. On the other hand, closing a credit card has the opposite effect as the length of your credit history is also one contributor to a high credit score.
So, logically, when you close your credit card account, you also cut off the length of the card’s history. So, instead of doing so, keep it open, and work on the problems leading to a lower credit score.
Another mistake that many people usually make is missing their payments, leading to a lower credit score. In reality, if you succeed in doing all the other tips mentioned in the article except this one, your credit score will still not be as high as you would like it to be. Paying on time is extremely important as it shows your responsibility level.
So, make sure to prioritize your payments over other things. Of course, there might be a case when it would be impossible for you to make the payment, but you can let the creditors know. If you explain your situation, they might even extend the deadline for you so that it will not harm your overall performance.
Not Reviewing Reports
Many people believe that the information on their reports cannot be incorrect as it was filled by them or the specialist. On the other hand, at the end of the day, we are all humans, and we all might make mistakes.
In order to avoid a lower credit score, it would be essential for you to have a look if the information written in the report corresponds to reality.
You would need to look at your personal information (such as Social Security Number, Address, and even phone number), payment history errors, duplicate accounts, hard credit inquiries, and what more.
Just like with the previous tip, you need to check if the information you provide is accurate or not. Even if you are lying about something that would not make any huge difference to you, it can, in fact, turn out to be a vital factor for rejecting you, lowering your credit score, moving you to the blacklist, etc.
Hiring Credit Repair Company
Although the market is full of great companies offering credit repairing services, the improvement of credit scores should only be made by yourself.
One of the reasons for doing so is that you would not spend additional money on those services and would reach your preferable credit score in a short period. In fact, if you are still not sure of your upcoming steps, you can contact the creditor and ask them for advice. This would surely be more beneficial for you.
Introducing yourself as Bankrupt
Many people believe that if they are filing for bankruptcy, they will be able to repair their credit. On the other hand, this is a widespread myth, and in reality, it is vice versa. This will be recorded on your credit history and will undoubtedly negatively impact your next steps.
To conclude, the role of credit score is essential for each of us. Nowadays, there are a lot of misconceptions regarding repairing credit.
This article summed up most of the common mistakes people make during that process, including closing their card accounts, missing payments, falsifying their documents or not checking their accuracy, hiring a special repair, and filing for bankruptcy.
We do hope that after reading the article, you will avoid those mistakes and will be able to repair your credit score faster.