When you're trying to fix your bad credit, you cannot afford to make mistakes that would be difficult, if not impossible, to undo and make the credit repair process longer and harder.
The following are 5 common mistakes in credit repair and how to avoid them.
1.
Ignoring Collection Letters It's tempting when you're hounded by collection calls, but it is a big mistake to ignore collection letters sent to you for past due bills.
You should always respond back in writing within 30 days.
First, you should send a validation letter, demanding the collection agency to prove they have the right to collect on the debt and the debt is really your responsibility to repay.
If you ignore the collection letter, the collection agency may be entitled by law to assume the debt is valid.
2.
NOT Disputing with the Credit Bureaus When you send a validation letter to the collection agency, you should also simultaneously send a dispute letter directly to the credit bureaus (Experian, Trans Union, Equifax) as well.
Make them prove that you are responsible for the debts listed.
Sending this letter also preserves your rights to take legal action in the future.
You should also dispute any errors you find in your credit report, as well as negative items that have expired (after 7 years, or 10 years for bankruptcies).
3.
NOT Disputing in Writing Sometimes people have the misconception that they can more effectively or easily dispute their credit online or over the phone.
In fact the best way to dispute your credit report is through written letters sent by certified mail.
This provides the essential documentation paper trail to prove that you did send the letters in the required time frame.
4.
NOT Storing and Organizing Your Documentation Good organization of documents and record keeping are essential to prove your case and dispute your bad credit.
Keep copies of ALL documents that are sent to you and copies of documents you sent to others.
Also keep a log of which documents were sent to whom and when they were sent.
Some credit repair software can help you keep track of open disputes and required documentation.
5.
NOT Understanding or Exercising Your Rights Credit laws are intended to protect the consumer's rights - that's YOU.
You have the right to know what's in your credit report; in fact, you can get a free copy of your credit report once a year from each of the 3 credit bureaus.
You also have the right to dispute any errors and demand removal of information that cannot be verified with proper documentation.
So don't be afraid to make your creditors prove their case.
Often they'll try to make you defend yourself; instead turn the tables on them and politely but FIRMLY request they prove everything.
You might just get your credit repaired quickly by avoiding these common mistakes.
The following are 5 common mistakes in credit repair and how to avoid them.
1.
Ignoring Collection Letters It's tempting when you're hounded by collection calls, but it is a big mistake to ignore collection letters sent to you for past due bills.
You should always respond back in writing within 30 days.
First, you should send a validation letter, demanding the collection agency to prove they have the right to collect on the debt and the debt is really your responsibility to repay.
If you ignore the collection letter, the collection agency may be entitled by law to assume the debt is valid.
2.
NOT Disputing with the Credit Bureaus When you send a validation letter to the collection agency, you should also simultaneously send a dispute letter directly to the credit bureaus (Experian, Trans Union, Equifax) as well.
Make them prove that you are responsible for the debts listed.
Sending this letter also preserves your rights to take legal action in the future.
You should also dispute any errors you find in your credit report, as well as negative items that have expired (after 7 years, or 10 years for bankruptcies).
3.
NOT Disputing in Writing Sometimes people have the misconception that they can more effectively or easily dispute their credit online or over the phone.
In fact the best way to dispute your credit report is through written letters sent by certified mail.
This provides the essential documentation paper trail to prove that you did send the letters in the required time frame.
4.
NOT Storing and Organizing Your Documentation Good organization of documents and record keeping are essential to prove your case and dispute your bad credit.
Keep copies of ALL documents that are sent to you and copies of documents you sent to others.
Also keep a log of which documents were sent to whom and when they were sent.
Some credit repair software can help you keep track of open disputes and required documentation.
5.
NOT Understanding or Exercising Your Rights Credit laws are intended to protect the consumer's rights - that's YOU.
You have the right to know what's in your credit report; in fact, you can get a free copy of your credit report once a year from each of the 3 credit bureaus.
You also have the right to dispute any errors and demand removal of information that cannot be verified with proper documentation.
So don't be afraid to make your creditors prove their case.
Often they'll try to make you defend yourself; instead turn the tables on them and politely but FIRMLY request they prove everything.
You might just get your credit repaired quickly by avoiding these common mistakes.