If you have decided to take the next steps toward repairing your credit—Congratulations! We are excited you have made the decision to work toward a better credit score and better financial health. Do you know what you should do to get started? There is a lot of advice out there about the best ways to repair your credit—do you know which ones to follow? At Leaf Credit Repair, we know all of the ins and outs of credit repair, and we can point you in the right direction, but there are a few things that you should avoid doing. Read on to find out more.
DON’T close old credit accounts.
Once you have an account paid off, it may be tempting to just shut it down all together. You may think that this will help you avoid charging things to the account, but closing an old account can actually hurt you more than it can help you. One of the factors that affect your credit score is the amount of time you have had an account, so keep those accounts open!
DON’T use template credit repair letters.
Credit bureaus see the same template credit repair letter over and over again. Once they see that you are using a template, they may be more likely to simply ignore your letter or write it off as frivolous or a waste of their time.
DON’T pay on old debts.
Every debt has a certain amount of time that the creditor has to collect on the debt. If they do not collect within that time, then they legally cannot do anything in a court of law to collect the debt. This is referred to as the “statute of limitations.” However, if you pay on an old debt, then the statute of limitations is reset, and the creditor can take you to court!
DON’T say too much.
The creditor must prove that you owe a debt in order to collect anything on it. Don’t do this work for them! If you say too much, then you end up validating the debt even though you did not mean to. Instead, say as little as possible, and let them do the talking. Admitting that you have a debt could also reset the statute of limitations in some circumstances.
DON’T forget to keep records.
If you are disputing a debt, you will need to keep a copy of all of the correspondence between you and the credit bureau or the creditor. These copies can be a great resource to build your case against a debt collector or a creditor. You should also never agree to anything unless you can review it in writing.
DON’T go it alone! Leaf Credit Repair is an experienced credit repair company, and we can help you get your credit back on track. Be sure to check into our blog next week for our discussion on what you SHOULD do to repair your credit. Call Leaf Credit Repair today at 1-800-818-6358 for a free, no obligation consultation to see how we can help you!