Avoid These Credit Repair Mistakes
If you want to boost your credit or learn how to do it, here are some of the errors you want to avoid.
Not Checking Credit Reports
You need to check your credit report first before starting to repair your credit. You need to look for any inaccurate charges or incorrect information that comes up. You can get 1 free report annually from the credit bureaus.
Canceling Credit Card Accounts
It’s not a good idea to close a credit account since 35% of your credit score comes from your credit history. Instead of canceling just try to keep a small balance to pay it off monthly.
Paying Debt Collectors
Do not pay the debt unless the debt collector can prove it’s legitimate and current. Remember that their job is to scare you so you can pay up. Never pay on a verbal agreement, always written so you can have proof.
Filing for Bankruptcy
Bankruptcy doesn’t improve your credit score and will remain on your credit report for up to 10 years. Lenders also ask if you have filed for bankruptcy so it might hurt your future loan applications.