When you have made bad financial decisions in the fast, your credit must have suffered. As the cliche goes, there is no way to go but up. You can try a DIY when it comes to credit repair companies but you might also want to consider hiring the best fast credit repair companies to help you out.
If you want to try DIY credit repair, then by all means. It is not impossible but it is not also the easiest of things to do especially if you do not know the ins and outs of how credit works. Below are just some credit repair errors you must avoid:
Saying Buh-Bye To Credit Products
People who want to rebuild their credit score cannot just say goodbye to credit products. In order to push your credit score up, you need to avail of credit products. You can use cash to pay things up and you will not have any debt against your name but you will also not have a credit history.
A better approach is how to avoid debt and understand how credit products can help you boost your credit score. You can up your credit score but remember that it does not happen overnight. There’s no magic spell you can utter so be patient and try to understand everything that is required to improve your credit score.
You have paid your credit card debt and so you closed the account so you don’t incur more debt. Wrong move. This will have a negative effect on your credit score.
When you keep your account, you have the benefit of having an established account. You also shrink down your available credit which is part of the equation when you look at the ratio of how you use money and how much you owe your creditors.
Paying Off Collections
Yes, you have the obligation to pay your debts but when you pay off collections, remember that they are not immediately removed from your credit report quickly. While this can be a debatable move since some experts will insist that a paid collection does not really hurt your score but since you’re struggling, it might be better to keep a good cash flow going.
When you do credit repair, you must remember that it is a legal process. And if you want those errors on your credit report gone, you need to make a good effort to present a good amount of evidence to the major credit bureaus. Overwhelming evidence almost always guarantees scrubbing off erroneous credit report entries.
When you talk to you representatives of your creditors, make sure you take note of all the details.
Keep a good record of your debts and receipts of payments. It is always good to keep a tab of how much you still owe and how much you are spending trying to pay off a debt.
If you will be sending mails, always send them via certified mail and ask for a return receipt.
Organize your files so you have them handy whenever you discuss with your creditors. Have a folder for all the contracts, terms, receipts, demand letters, or any other correspondence along the way.
As you can see, it is easy to commit mistakes when you try DIY credit repair. This is the main reason people hire the best fast credit repair companies that have experts who knows the credit process like the back of their hand.