Common Credit Repair Mistakes
Going about proper credit repair requires several dos and don'ts.
There are plenty of helpful credit repair guides and books that can show you how to go about the process.
But rarely do you read about the don'ts.
The following are common mistakes made by consumers repairing their credit.
One of the biggest mistakes I see is lack of organization and record-keeping.
It is crucial to make copies of all dispute letters and copies of certified receipts, and copies of updated/corrected credit reports that are sent following an investigation.
Dates are very important.
You need to know when each dispute letter was mailed so you will know when to expert to hear back from the bureaus.
I like to keep 3 separate folders for the 3 credit bureaus so that the documents do not get mixed between the 3.
Next, many people like to dispute online and I think this can be a mistake.
While it is quicker and more convenient, it is recommended to send disputes in writing to the credit bureaus.
This way you will have written documentation and a return receipt.
The next big mistake is ignoring collection letters that are sent by third party collection agencies.
These letters should NEVER be ignored.
Even if you think the collection is valid, you should always respond back to the collection agency in writing within 30 days.
You want to send a validation letter which basically demands that the collection agency prove that the debt is valid, and that they have the right to collect on it, and that they have proof that it belongs to you.
If you simply ignore the collection letter, the law permits them to assume the debt is valid.
Another common mistake is that people do not dispute with the credit bureaus first.
Often they will send a verification or dispute letter directly to the creditor.
It is wise to do this, but it is crucial to always send a dispute about the item to the credit bureaus before you send one to the creditor.
Doing it in this order preserves your legal rights and permits you to take legal action against a creditor if you need to down the road.
There are plenty of helpful credit repair guides and books that can show you how to go about the process.
But rarely do you read about the don'ts.
The following are common mistakes made by consumers repairing their credit.
One of the biggest mistakes I see is lack of organization and record-keeping.
It is crucial to make copies of all dispute letters and copies of certified receipts, and copies of updated/corrected credit reports that are sent following an investigation.
Dates are very important.
You need to know when each dispute letter was mailed so you will know when to expert to hear back from the bureaus.
I like to keep 3 separate folders for the 3 credit bureaus so that the documents do not get mixed between the 3.
Next, many people like to dispute online and I think this can be a mistake.
While it is quicker and more convenient, it is recommended to send disputes in writing to the credit bureaus.
This way you will have written documentation and a return receipt.
The next big mistake is ignoring collection letters that are sent by third party collection agencies.
These letters should NEVER be ignored.
Even if you think the collection is valid, you should always respond back to the collection agency in writing within 30 days.
You want to send a validation letter which basically demands that the collection agency prove that the debt is valid, and that they have the right to collect on it, and that they have proof that it belongs to you.
If you simply ignore the collection letter, the law permits them to assume the debt is valid.
Another common mistake is that people do not dispute with the credit bureaus first.
Often they will send a verification or dispute letter directly to the creditor.
It is wise to do this, but it is crucial to always send a dispute about the item to the credit bureaus before you send one to the creditor.
Doing it in this order preserves your legal rights and permits you to take legal action against a creditor if you need to down the road.
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