I have seen people and credit repair companies alike make the same mistakes when attempting to repair credit.
First I will identify the mistake and then give you the answer on how to avoid repeating the deadly mistakes yourself.
Let's dive in by addressing the most common practice and then cover the others starting with number one: 1.
Simply mailing out the same template dispute letters The credit bureaus image in and keep records of all the disputes that are sent in.
If they notice a regular pattern of disputes emerging, such as a template that you may have found on the internet that will be used by millions of others, they will likely flag this dispute as frivolous and end the investigation.
If they flag your account they make it very difficult to make any further attempts to fix your credit report.
Disputing in the wrong order When you dispute your credit report, you are asking the bureaus and creditors to prove that they have kept to the requirements by law.
If you find they have violated laws then they can face a law suit, but your case will not stick if you have not followed the correct procedures.
If you plan to request sympathy from a creditor, be sure you do this before you take it to the bureaus.
However if your plan is to challenge a remark on your report, go after both the creditor and the bureaus.
Not going to the source just the credit bureaus alone A large number of people are quick to pay the creditors and collection agencies in an attempt to stop the harassment from these people.
If you pay one of these old accounts to get them off your back, you may just be throwing money away.
Before you pay these debts, you can request proof from them that it is your debt.
You may be surprised to find how often they fail to validate the debt as yours.
Refreshing the statue of limitations The statue of limitations is defined as the time in which a creditor can sue a client for an outstanding balance.
The time varies from state to state, but the statute will begin on the date of which you last made a payment.
Making a new payment, even if it is decades later, can reactivate this statute causing it to become legally enforceable once more.
Before you make a payment to the creditors, ensure you do your research as to whether or not it was within the statute of limitations.
Supporting inconclusive negative data Another common mistake I see is sending supporting data which can accidentally confirm an account.
Often people will them selves confirm their account that left alone by law would need to be removed.
My advice here is to say as little as possible, and make the creditor provide you with the proof not the other way around.
You are innocent until proven guilty once you enter into dispute status so let the creditor prove you are guilty.
Using Standard Mail Contrary to popular belief credit repairs is legal and works for most people.
It is not what you know, but what you can prove that counts.
According to information given in the Fair Credit Reporting Act (FCRA) any individual has 30 days to investigate and respond to your dispute.
This is a vital weapon to use against the creditors.
They keep millions of records and it can be very difficult for them to produce the documents you have requested in this especially in this time frame.
Maintaining Proof Every letter, email, phone call or any other means of communication between you and your collection agency or creditor should be kept as evidence when compiling your case against them.
Never negotiate with them or accept any new offers unless they are in writing and it is imperative that you keep everything.
Closing previous accounts The age and type of your accounts plus the amount of debt that you have can make up more than half your overall credit score.
When you close an old account, this will remove this positive aged trade line from the score calculation.
Always use your credit cards every 6 months to keep them active.
Keeping your credit cards active is as simple as filling the tank with gas twice a year.
This is the easiest tip but can often bring some great results.
Not using a professional Not using a proven and experienced professional is by far the most deadly mistake.
This can do more damage than the previous 8 steps together.
There are many things to look for when you decide to hire a professional to handle you case.
The things to consider are the proof of real results, the price, and of coarse the time that you will be complete.