There are indeed some very serious credit repair mistakes you can make that will kill your chances of raising your score. Here are five of the most deadly:
MISTAKE #1) Not taking any action
This is the worst thing of all. Many people just keep putting it off until it’s too late. Most of the things that hurt your score will remain there for seven years.
Think about all the loans and mortgages you won’t be able to get. In other words, you need to take action. Doing something is better than not doing anything at all.
MISTAKE #2) Not paying your bills on time
This is one of the biggest reasons people have bad credit. And some opt not to even if they can, in order to reduce their overall debt.
Obviously it’s no secret that getting rid of debt is critical. But remember that late payments will have a negative effect on your report for a long time, which is even more important. Only worry about your overall debt when your monthly expenditures are taken care of.
MISTAKE #3) Having multiple credit cards
Many people do this in order to “establish credit.” This is probably not a good strategy. Applying for too many cards will negatively impact your score, and will also make it more difficult for you to pay on time.
Think about it: having five different payments is much harder to keep track of then one. And the higher your credit line is, the more likely you are going to spend money on things you can’t afford. Therefore, you will dig yourself into a further hole.
MISTAKE #4) Avoid shutting down each of your accounts at the same time
You might think you should get rid of all your cards to help your credit. But keep at least one open. If you shut down each of your accounts while you still have bad credit, you don’t give yourself the chance to build it back up.
MISTAKE #5) Going with dishonest companies
There are a lot of scams in the credit repair industry. Many of the companies that claim to help you raise your score will just take your money and leave you in an even bigger hole.
How do you spot the scammers?
Any company that claims they can help raise your credit score by disputing everything on your report should be avoided. Many of them will have you believe you can reverse just about anything on your score.
This is false.
Also, you can easily spot dishonest companies by just reading customer reviews. Check with the BBB as well. These steps will help you easily avoid scams and locate the right company for you.
FURTHER READING:
