Everyday I’m meeting more and more people who seek my services to repair their credit.  Many times the people who seek my help have already attempted to repair their credit on their own.  In the process of doing so, many have made mistakes.   So I compiled a list here of the top 10 credit repair mistakes when you dispute your credit report.  Basically these are most common mistakes people make when going through the process of credit repair.

I originally was going to call this article the top 10 mistakes.  However, a mistake is something we are ignorant of, while an error is something we should know better of.  So I hope after reading the Top 10 Credit Repair Mistakes, you will know better and do better.

#10 of the Top 10 Credit Repair Mistakes

Closing Old Accounts

A major part of your Fico score is calculated by your dept ratio. That ratio has nothing to do with income and income has nothing to do with your credit score. It’s actually the amount of credit your using divided by the amount of credit extended to you.

So if you have 5 open credit cards accounts 3 of them are maxed out, 2 of them are open. What happens they add up all the outstanding balances and they take that and divide that by all of your credit limits. If overall you’re at 50 percent, you’re at 50 percent. This is what happens when you close an old account.

Let’s say you didn’t like the history on it, it’s got a $3,000 balance on it you were late a few times and for what ever reason you decide to close the account. What happens now is that outstanding balance still goes toward the outstanding balance but the available credit limit no longer applies to the debt ratio. You send your debt ratio through the roof and drive your credit score down sometimes drastically.

#9 of the Top 10 Credit Repair Mistakes

Using Template Forms

On the internet you can find 101 books on how to fix credit report.  Even despite what the FCC says that only time can heal a credit report.  They’re still vast amounts of step by step instructions on how to dispute your credit report online.  Most will offer valuable information and tips to dispute inaccurate information on your credit report. The problem with most is everyone is using the same template letters. When you dispute your credit report the reporting agencies charge the creditors because they  have to verify the information.  This is a problem for them so they have systems in place to identify template letters.

Once the system identifies a template, it kicks it back.  The reporting agency will send you a frivolous, we’ve already verified this information, were not even going to pay attention to you, blah blah blah letter.  Now for the credit bureau a little red flag goes up they are now aware you’re not happy with your credit report.  Now every time you try to address dispute your credit report online or off for several months in the future, you’re going to have issues. I’m not saying don’t use templates but make them unique by making them personal to you.

#8 of the Top 10 Credit Repair Mistakes

Dispute Credit Report Online

When I say dispute credit report online what am I talking about here is to not go to the website’s of Equifax, Experian, or Transunion, and try to dispute inaccurate information on your credit report. Trust me here this is not the way you want to dispute your credit report online.

On their websites there are only a limited number of times you can dispute your credit report.  Also if what is happening with your credit report is not one of the options of disputes listed, then your out of luck. There is no other button or space to put in your whole explanation because it only holds so many characters. And even if your case did escalate and you had to go to court, you could not prove the bureau didn’t get back to you within a thirty-day period because you have no documentation.  So do not go directly to your creditor’s or credit reporting agency’s website to dispute your credit report.

#7 of the Top 10 Credit Repair Mistakes

Reviving the Statue of Limitations

#7 on the Top 10 Credit Repair Mistakes has to do with the Statue of Limitations or SOL for short.  SOL is a period of time a lender can sue you for a debt. Every state is different so it’s important to find out what your states SOL is.

Well what happens very often is you will get a collection agency calling you on the phone harassing you trying to get you to pay on a debt that is just about to go outside the SOL.

In another few months they are not going to be able to go after you or sue you so they try to talk you into making a payment, any payment. The SOL starts from the original creditors letter trying to collect or the last payment made.

So if you just agreed to make a $1 payment just to get the guy off your back, you just revived the SOL and now they have 4 years or 5 years or 7 years to collector sue you depending on your state’s SOL. So be weary of creditors wanting to keep you debt alive.

#6 of the Top 10 Credit Repair Mistakes

Not Using Certified Mail

I learned very early on my first attempt to repair my credit report that you want and must have a paper trail. When you dispute your credit report you will need to be able to prove each step that you took and the order in which you took those steps. When you don’t use certified mail, you basically have no leg to stand on. If they don’t get back to you within the period of time allotted by law, there is really nothing you can do about it. You need to be able to document and prove you took the proper procedures. In the court of law it does not matter what you know, it is what you can prove. Certified mail is the first step in proving.

Avoid Top 10 Credit Repair Mistakes With Our Full-Proof System to Repair Your Credit

#5 of the Top 10 Credit Repair Mistakes

Dispute Your Credit Report in the proper sequence

When you dispute your credit report there is a process you have to follow. You just can’t go after the collection agency or directly to the lender and start threatening to sue. There are proper steps to follow. The proper steps is you have to dispute with the credit bureaus first. So if you ever had to go to court and you went to the lender directly, and you’re trying to sue them over some violation of the Fair Credit Reporting Act, the first thing they are going to ask you is did you dispute with the credit bureau first and to prove it. Which means where is your certified letter to the reporting agency right? And if you didn’t do it right or don’t have it the court is going to throw it out. You lose.

#4 of the Top 10 Credit Repair Mistakes

Keeping Organised & Giving Up Too Soon

Number 4 of the Top 10 Credit Repair Mistakes is very common but you must develop a system so you to know what steps need to be taken and when those steps are to be taken. Many people will start the process but have so many questions about their rights and such they just give up.  Once you start the process of trying to dispute your credit report don’t stop and stay on top of dates, paper work, and always follow up.

#3 of the Top 10 Credit Repair Mistakes

Not Validating

90 Percent of the time collection agencies buy debt in bulk and don’t have all the paper work that came with the debts they purchased.  As such, they don’t have a valid right to collect from you. So before paying off any debt, make sure it’s a valid debt.  They should have copies of the contracts you signed, payment issued, copy of license to do business in your state, and a whole plethora of things you could request from them. And by law if they are going to collect from you, they have to provide that information to you especially in that first 30 day window.

#2 of the Top 10 Credit Repair Mistakes

Not keeping Copies

As I said it’s not what you know it’s what you can prove in the court of law. A huge problem many people experience while learning how to fix credit is they will pay a collection and not keep copies.  Or they have this letter saying so and so item will be removed from their credit report. Problem is they never followed up on it Mistake #7 and 3 months later, it’s still on their report. Problem is they lost that letter, so they have to start the whole process again. Keep copies of everything.

#1 of the Top 10 Credit Repair Mistakes

Wait for it, Wait for it…

The number #1 Repair Credit Mistakes is –  Validating Negative Information.  

According to the Fair Credit Reporting Act, a creditor or collection agency cannot report anything they cannot verify. So if you are challenging anything on your credit be as specific as possible. Because if they can’t verify that one portion, there is a good chance they just going to remove it all because they don’t have the paper work. So when you say I know I was late this one month but I was on time this other month, you are just admitting guilt and making it harder on yourself. The law is playing in favor on this one here and I’m not saying go out there and dispute accurate information I’m simply saying don’t validate the other information you’re not disputing.

While this list is only a summary of the top 10 mistakes, many other kind of mistakes lead to failed credit repair. With the knowledge of this Top 10 Credit Repair Mistakes list, you should know by now you MUST equip yourself with knowledge and understanding to be successful to repair your credit.

Don’t You Make these Top 10 Credit Repair Mistakes! Check Out Our Proven System & Repair Your Credit Yourself