Making the decision to fix your credit is one of the most fiscally responsible things that you can ever do in your life.
But you must be careful and make sure that you fix your credit the right way and not make mistakes that may stretch out the process for you.
Here are the 3 most common errors consumers make when trying to fix their credit:
1. Closing Old Accounts
15% of your credit score is the average length of your open and active accounts. Closing your old accounts will shorten your length of credit and lower your credit score.
2. Maxing Out Your Credit Cards
Overloading your credit cards does not help your credit, in fact, it actually lowers your credit score. Keep your credit card balances at 20% of the credit limits or less.
3. Not Keeping Good Records
Keeping your documents and all correspondence from creditors, credit bureaus, and collection agencies will help ensure that the credit repair process will go much more smoothly.
There are several laws that these agencies have to follow, keeping good records will allow you to leverage your consumer rights and repair your credit as fast as possible.