For a variety of reasons, such as missing a loan payment, making late payments on credit cards, or suffering identity theft; credit damage can happen. Unfortunately, sometimes an unexpected or unpreventable event can occur. You are not alone if you have found yourself with credit struggles. Being approved for credit or loans or, if approved, offered unattractive terms, millions of other Americans find it challenging to maintain good credit. The good new is that you can repair your credit. Today, we at Credit Exterminators would like to discuss the dos and don’ts when you commit to credit repair.
Do: Evaluate Credit Reports
Do not take this denial at face value if you were denied credit or otherwise determined to have poor credit. To ensure it contains accurate information, check your credit reports regularly. All consumers are entitled to a report from each of the primary credit reporting agencies Experian, Equifax and TransUnion. Unfortunately, errors are more common than you would think. To help you navigate this process, you can hire a professional credit restoration company.
Don’t: Neglect to Manage Your Bills
Check if you can budget monthly payments, even if you think you can’t afford to make a payment. The lender should be contacted to see if you can go on a payment plan or other arrangement if your financial situation prevents you from making payments. If you communicate with them, many will work with you.
Do: Take Steps to Repair Your Credit
It is a good idea to carefully look at your spending situation if you have checked your credit report and all seems in order. This helps determine what is contributing to a decreased credit score.
– To avoid accumulating more debt, use cash or debit to make purchases.
– Set up automatic bill pay if you have the funds but forget to make payments.
– Set up a realistic goal to achieve a healthy credit score as you consider pursuing credit help so you can evaluate your situation.
To help you get back on track and, ultimately, reach financial freedom, talking with the experts is essential.
Don’t: Cancel or Close All Your Credit Card Accounts
In order to avoid using them, many people seeking to pay down debt will close credit cards. Especially if older accounts are closed, this can negatively impact a credit score. Continue to pay down debt and lock away the cards, for now, instead.
Do: Be Patient when Repairing Credit
A commitment to a feasible plan will make it happen since repaired credit doesn’t happen overnight. For good credit behaviors to reflect in scores, it is important to know it takes time. You should start to see results, after about 30-60 days of staying on track.
Don’t: Transfer Debt from One Credit Card to Another
Avoiding payments only makes things worse, as does transferring debt from one credit card to another. Especially once fees begin to kick in, it may offer a temporary reprieve but will catch up with you over time.
