Oh those darn FICO scores. They are so sensitive. Sometimes it feels like you have to walk on eggshells to keep them happy. Here are a few little things that can really send them into a tail spin. Credit repair isn’t really all that hard when you know what not to do.
Faux Pas: A social blunder or indiscretion, implicitly unintentional. From the French for false step.
Running Up Revolving Balances
This is a little boring, but you would be amazed how many brilliant people get completely blindsided by this little credit repair faux pas. Your credit cards can deliver awesome credit score benefits, but if you use too much of the cards capacity your scores can tank by 100 points, or more (ouch that hurt). Big cards, little cards, it does not matter. Credit cards with small limits are easy to max out and must be managed with care lest you wake up and find your scores in the hole on the day you need to go car shopping.
Making Late Payments
I guess you already know this, but it is worth emphasizing. A single late payment in the middle of your credit repair effort will cause your scores to fall – a lot. It is very disappointing, especially if it happens by mistake. And mistakes happen. We see it all the time, people get busy, things come up, a bill gets lost in the drawer, and one little payment gets missed. Take precautions against late payments! You can create a budget, consider setting up auto-pay, write down due dates in your calendar, whatever it takes.
Getting the Timing All Wrong
Credit repair is practical. Ultimately it is about what you are going to do with your credit; finance a car, buy a house, or you name it. You have got to plan your purchase. When it comes to your credit scores, timing is everything. You should get into a defensive mode about 90 days before you need your credit scores to be at their best. During this 90 day period you should reduce revolving balances, avoid new credit activity, and behave yourself!
Ignoring Collection Letters
Collectors cannot report a collection without sending you a collection notice. If you do not want the collection account to show up on your credit report, you can send a debt validation letter to the collector. They cannot report until they have validated the debt. And you would be surprised how many collectors can’t validate. Oh, don’t worry. If you are in our credit repair program we will do it for you. Just send us the collection letter when you get it. If you are not in our program, what’s up with that?
Ignoring Your Credit
The sand is not the place to stick your head. Credit repair is truth time. There is nothing that cannot be dealt with in a constructive manner. Literally millions of people go into virtual hiding after a financially rough period. There are ways of confronting your credit issues and restoring your inner (and outer) peace. Time is money and every day you wait is expensive. Credit repair works. Give a call.