Repairing credit is not a complicated task if you are aware of all the reliable information, which can be helpful in improving your credit. It is not necessary that you pass on your first attempt. But if you are thinking to repair your credit or you are in the middle of the process right now. Here are few common mistakes you surely have to keep in mind while repairing credit.

1. Not repairing your credit at all

Generally, this is one of the most common and biggest mistakes, i.e. putting off credit repair without a fixed limit. Although, most of the negative information on the credit report will be shown after seven years still it is quite a long time to have a bad credit on your report.

2. Disputing everything on your credit report

This is one of the strategies what most of the credit repair companies use. But there you have to face to kind of problems while repairing your credit report. First thing is, you cannot actually rely on it. If you argue about a number of items, there are possibilities that credit bureaus could dismiss your arguments as not having a serious purpose or value.

The second thing is, you won't like if everything is taken off your credit report. If positive accounts are helpful in maintaining a good credit rating, on the same side disputing them could be responsible for bringing down your credit score.

3. Hiring any credit repair company

All in all, most credit repair companies do not have the credibility needed. Even the Federal Trade Commission has stated that many credit repair companies are a scam. Why? That's because these companies generally make big promises like overnight improvements etc. (only to fall flat on their faces). So what do you do? Well, either opt for the most trusted credit repair companies (Lexington law, the credit people etc.) or save the extra bucks and do it yourself.

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4. Canceling credit card accounts

If you don't know this, by any chance. Closing a credit card can also be bad for the credit score, especially if you have any balance on your card or it is one of your old credit cards. So remember, if you think that by closing your credit card you can repair your credits, think again.

5. Playing the balance transfer game

If you think you can avoid the payments by transferring credit card balances, you are just postponing the unavoidable. The strategy will take you nowhere. You are just adding more money if you consider the balance transfer fees while transferring the balance. It will only increase the amount you owe instead of bringing it down.

6. Cutting up your credit cards

There are a number of people those who go through a bad credit for a long period of time. They just try to swear off the credit cards. But doing this will only drag you to a situation where you will only find difficulty in getting new loans or any other type of credits. Not just this but if you use your credit card in a right way it will help repair your credit score as you go through the credit repair process.

7. Missing some credit card payments in place of others

It is good if you are making payments according to your priorities but skipping some payments is not a good option. If you want that your credit should remain stable, never miss a payment. For your information, this will only make your credit worse. There might come a situation where you have to make a decision whether to pay a collection amount or to pay an account that is current, so always go for the account that is current.

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Keep in mind, whenever you send letters to credit bureaus, lenders, creditors and collection agencies, always do the same via certified mail with a request for return receipt. That way you have a surety that your letter has been sent and if it's been received.

9. Not checking your credit report

Make sure you should always check your credit report before you start repairing your credit. Doing this will help you figure out what items you need to pay attention to and how you can improve your credit. Ensure you have a copy of your credit report or be ready to face difficulties while deciding where to start repairing your credit.

10. Filing bankruptcy

Never ever think of bankruptcy as the strategy for repairing credit. For your information, doing this is not going to improve your credit, in fact, in some cases, after filing bankruptcy your credit can get even worse. Because your credit report contains bankruptcy for 7-10 years, you'll still find difficulties in getting loans and credit cards.

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