Top 5 Mistakes People Make When Repairing Their Credit (and How to Avoid Them!)

Repairing your credit can be an overwhelming task, especially if you are doing it on your own. Many people make common mistakes that set them back instead of moving them forward. Good news? With a little guidance, you can avoid those pitfalls and raise your credit score a lot more efficiently. Let's dive into the top 5 mistakes people make when they are repairing their credit and how to steer clear of them.

1. Not Knowing Your Credit Report Inside and Out

One of the huge mistakes is not going over your credit report with a fine toothcomb. Single errors in your credit report can make all the difference in your score. Obtaining a copy of your report from the three major credit bureaus, Equifax, Experian, and TransUnion, and looking for errors is very critical.

Tip: Check your credit report regularly for errors. If you find one, dispute it on the spot. The Credit Pros will help go through a line-by-line analysis and seamlessly walk you through the dispute process.

2. Failure to pay attention to payment history

Your payment history accounts for 35 percent of your credit score. Late or missing payments most definitely will impair your score, and rebuilding it takes time.

Tip: Set up automatic payments for every one of your bills to ensure that you will never miss a due date again. If you're already behind, focus on catching up as fast as you can. If you want to look for professional advice, research The Credit Pros for help in formulating a realistic payment plan, and then repairing the damage from your past.

3. Closing Old Credit Accounts

It may sound like closing old, unused credit accounts would be good for your credit score, but it can have the opposite effect. Doing so will decrease the amount of credit available to you and raise the credit utilization ratio, thus lowering your score.

Tip: Keep old accounts open and use them occasionally to show some activity. The Credit Pros will help through professional advice on managing these accounts to maximize the credit score.

4. Applying for Too Much New Credit at One Time

If you make an application for new credit, it is recorded as a hard inquiry on your credit report, and hard inquiries are a known short-term score detractor. Multiple inquiries in a short amount of time are especially damaging.

Tip: Be very selective in applying for new credit. Only apply when necessary, space them out as much as possible. The Credit Pros can help you to strategically plan and provide personalized advice on the best decisions for the health of your credit.

5. Lack of Strategic Plan for Paying Down Debt

Too often, people have no strategy to pay down their debt. Just making the minimum payments keeps you in debt for many years and costs a lot in interest.

Tip: Draw up a good plan to pay off your debts, starting either with the highest interest rates first, known as an avalanche method, or with the smallest balance, otherwise known as the snowball method. The Credit Pros customizes debt management strategies that will get you to be debt-free much faster.

Conclusion

Repairing your credit doesn't have to be a do-it-yourself venture of trial and error. Avoiding these common mistakes can significantly help speed up your repair process. Moreover, professional advice from The Credit Pros will help you in doing much more efficient and practical things. Keep in mind that your credit score reflects your financial health. Your credit score is an indispensable factor in your financial life; you just need to take the right action towards a better future.

Want to be in charge of your credit? Look no further to see how The Credit Pros can help you achieve all your credit goals today!