How to repair your credit seems like a daunting task because your poor credit score predisposes you to a rotten financial phenomenon. Bad credit would make creditors charge you high interests because they have no faith in you. Your application for new accounts might even be continuously denied. The worse cases scenario is trying to fix the credit wrongly — Checkout the things you must not do while repairing your credit scores.
- Canceling accounts
Closing a credit card account is a very bad move particularly when the credit card has a balance, or it is an older card. Closing the card will never improve the score.
- Filing bankruptcy
Using bankruptcy as a repair tactic is downright silly. In some cases, filing bankruptcy makes the scores worse. Note that the bankruptcy status will stay on the credit report for seven to ten years with and this means you will continue to struggle with loans and accounts for that long.
- Disputing everything on credit report
Some credit companies use this tactic but the problem is that credit bureaus might not believe it and they will disregard the dispute. The other issue is that if there are positive accounts involved, disputing them would make credit scores to drop.
- Not sending letters via certified mail
It is important to send letters to different agencies through certified mail and a requested return receipt. This is the only way to prove that the letter has been delivered.
- Transferring balances
Playing this transfer game to escape payment is like procrastinating on the inevitable. Remember that there are transfer fees which will be incorporated into the balance every time the transfer occurs. This will, in turn, increase your debts instead of reducing it.
- Cheating with credit Issues
If you think you have a legitimate problem in your credit report, dispute it through the right means. But if you made late payments, that is on you. You can beg your lender to remove the bad report but by all means, do not lie about anything.
If you do not know how to fix credit score, seek a debt management program ASAP but do not try any of the above things.