How to Avoid the “5” Common Credit Repair Mistakes
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How to Avoid the “5” Common Credit Repair Mistakes
Credit repair is a tough task but not impossible by any means. With the proper help and guidance, credit repair can be very rewarding as we have seen consumers credit scores increase 200 to 300 points in some cases ( scores vary from case to case). On the flip side, embarking on the credit repair journey without the proper knowledge or help, can backfire and hurt your credit . Here are some common credit repair mistakes to avoid from questions we get asked regularly by customers and or consumers:
[fancy_header variation=”red” textColor=”#ffffff”]1- CLOSING OPEN REVOLVING CREDIT ACCOUNTS[/fancy_header]Revolving credit is a type of credit where the consumer’s balance and monthly payment fluctuate. This type of credit account (or line of credit) has a predetermined credit/spending limit. A revolving account doesn’t close just because the account has a zero balance. It remains open until the lender or the consumer chooses to close it. This is why a revolving credit account is also known as an “open-ended account” as opposed to installments accounts ( like car loans) which close once the consumer pays it off . Good Examples of revolving accounts are most credit cards secured or unsecured, department store cards etc…
Closing such accounts can drop your credit score specially if those accounts are old because you don’t get rated on closed accounts. If you are not happy with the interest rates some of these old accounts offer, use them for small purchases and pay them off instead of carrying balances on them. This way you get to keep them and benefit from the positive scoring they would provide your credit.
[fancy_header variation=”red” textColor=”#ffffff”]2- Disputing with Templated letters[/fancy_header] A lot of consumers go online and get letters that are templates letter. These letters are being used by millions of consumers. Credit bureaus are very advanced technologically and they can detect and flag those type of letters which results in not removing the negative items disputed with the template letters. You do not want your account to be flagged as it will be very more difficult to make any further headway on your credit report.
Let the professionals write up these letters on your behalf contact us and we can help you .
[fancy_header variation=”red” textColor=”#ffffff”]3- Re-activating the statue of limitations in your state[/fancy_header]
Here is a good example of that. If you have a collection that is few years old let’s say for the case of simplicity 3 years old. It is considered “dormant”. If you go ahead decide take care of that small collection and make a settlement pay it off, you just re-activated that negative item and now it is reporting as a collection settled account. At EZ Choice Financial, We can help you find errors and get it removed rather than pay it reactivate the debt and hurting your credit further in the process .
[fancy_header variation=”red” textColor=”#ffffff”]4- DISPUTING IN THE INCORRECT ORDER [/fancy_header]
Most consumers dispute online with the credit bureaus( because it is free). This tactic does not work and you only get to dispute the item once online. When consumers dispute online there is no paper trail or documentation generated. When it comes to disputing, consumers should dispute with the credit bureaus first. Dispute in a way where there is documentation trail ( online there is no documentation). Dispute by letter forms ( non-templates letters) . Make sure your letters are documented, archives, dated, and sent by certified mail. There is more to this, contact us so we can help you. Also, Do not dispute with the creditor first
[fancy_header variation=”red” textColor=”#ffffff”]5- INCORRECTLY DISPUTING YOUR ACCOUNTS[/fancy_header]
Incorrectly disputing your account(s) by saying it is not yours!!! If you dispute an account as not yours and it actually is, if it did come off, it will come back on after a while because the bureaus will find out. We get asked if our work is permanent or do the negatives come back? Our work is permanent because we dispute the right away (we do not dispute that the item is not yours not unless it actually isn’t). When we dispute, we do it the right way by finding how the info is reported and look for the errors and violations. We document and archive all of our work and correspondence just in case our attorneys need to step in against the violations by the creditors or credit reporting agencies.
Everybody is entitled for an Absolute Free Credit Consultation and Evaluation. We will tell you exactly what is going on with your credit, and what we can do to help you. We are so confident in our service, that we offer a money back guarantee if there is no improvement in your credit(the items you came in with) within 6 months. Call 1-(888)-655-6768, our credit repair experts are waiting to give you a free credit consultation OR Contact Us on our website!