If you’re looking for things to avoid in credit repair, you’ve come to the right place. There are countless mistakes that you can make in the world of credit repair, and these mistakes add up to some serious consequences. Not getting details ironed out in the right way can make it even harder to get out of debt. In some cases, getting the details wrong can even invite a lawsuit. That’s why it’s so important to really make sure that you’re focusing on the bigger picture as much as possible. That’s the real way to get to the goal of being out of debt.
One of the top mistakes that you will want to avoid is trusting a collection agency. Remember that their job is to get money out of you no matter what they have to say. If they have to threaten you with legal action, they will certainly do that. If they have to call at all hours of the day and night, they will certainly do that. They have the technology to call you over and over — it’s really no stress on their side.
What you need to do is make sure that you get a limited cease and deist letter printed and sent to them. Make sure that you are always using a traceable method of delivery. We recommend Certified Mail because you can request for a return receipt. That’s the best way to get these problems solved.
Now, you might assume that you don’t need to do everything in writing — they can’t really be that intent on screwing you over, right? Wrong! Collection agencies couldn’t care less about what’s going on in your life, or anything of the sort. They care about money, and they want to make sure that you are giving them the full amount that they ask for.
Another mistake that you want to avoid is thinking that you don’t have any way to negotiate anything. On the contrary — you actually have more power than you can imagine. All they can do is attach negative information to your report and keep sending you letters. They can threaten all they want — the damage is already done. Your collection information on your credit report will fall off after 7 years from the date the collection accounts were originally created.
No matter how many times the collection agency threatens you, you need to make sure that you know your next steps. Asking for validation of the debt is one of your strongest defenses. Even if you know that the debt is yours — they still have to validate. They still have to prove to you not only is the debt yours, but they have the right to collect upon it. This is something that might take some time, but it’s definitely worth doing in the long run.
When you want good credit, you have to learn to work with the collection agencies to get it. Arranging for a pay for delete situation is also a good idea — it makes those tradelines disappear, boosting your credit score dramatically.
The final mistake that many make in credit repair that bears highlighting is that they focus so much on getting rid of bad debt that they never get into credit again. Becoming a cash only customer really isn’t a wise idea. You’re a lot better off making sure that you have some type of credit.
Even if you have to start over from scratch with store cards, secured cards, and other small cards, that’s better than being cash only. If you dream about having a car loan of some kind in the future or even a house, you’re going to need to prove that you can handle credit. By paying off all of your debts and then never getting anything else, all you’re going to show is that you really can’t handle credit at all — not the impression that you want to give off!
Now is definitely the time to make sure that you focus on the task at hand — keep these mistakes in mind when you embark on your journey. Good luck!