Updated: Dec 19, 2020
Easily put, credit repair is the process of getting inaccurate information removed or corrected on your credit report. This is important because it provides a fair and complete picture of your finances, taking steps to boost your credit score, and resolving to avoid credit problems in the future.
It's much easier to hire a credit repair company to do it for you or you can do it yourself. If you choose to go the DIY route, be sure you know your rights and avoid the 16 mistakes listed below.
Mistake #1: Failing to Check Credit Reports
Mistake #2: Procrastinating
Mistake #3: Avoiding Credit Education
Mistake #4: Not Keeping Documentation
Mistake #5: Disputing Too Much
Mistake #6: Disputing Online
Mistake #7: Disputing with Boilerplate Language
Mistake #8: Sending Uncertified Mail
Mistake #9: Falsifying Documents
Mistake #10: Transferring Credit Card Balances
Mistake #11: Missing Payments
Mistake #12: Canceling Credit Card Accounts
Mistake #13: Applying for New Credit
Mistake #14: Paying Debt Collectors
Mistake #15: Hiring a Shady Credit Repair Company
Mistake #16: Filing for Bankruptcy
Know your rights under applicable credit laws.
Obtain and read your credit reports once a year and look for errors.
Only dispute information that you believe is wrong.
Keep records of everything and get everything in writing.
Avoid disreputable credit repair companies.