Avoid the 3 Biggest Credit Repair Mistakes

In of CreditGuy (August 22, 2008 8:22 pm)

Fixing your credit can be a long and involved process, with many opportunities for the novice to make a mistake. Three of the biggest mistakes you should avoid are:

1. Hiring a Fly-by-Night Firm: The Federal Trade Commission is constantly trying to exterminate scam artists who promise instant credit repair, but like rats that hide from the light, they always return. You can pretty much assume that it is a scam if the company does these three things:

  • Guarantees their results in advance. They need to know your individual situation to predict their results.
  • Wants to charge you a big, upfront fee. Generally speaking, their charges should be based on their results.
  • Suggests that you create a “new” credit report by using a different Social Security or taxpayer identification number. This is illegal! And no reputable company would advise you to break the law by committing fraud.

If you run into problems with a company you’ve chosen to help you, you can find a legitimate law firm through the National Association of Consumer Advocates for help. You can also check

2. Failing to Get It All in Writing: The phone may be convenient, but it is not your friend. Even with copious note taking of phone conversations with creditors, collector, or credit bureau, you’re much better off conducting credit repair in writing.

Keep copies of everything you write and receive, and keep notes on any calls where information is exchanged. Also, if any companies harass you, take notes, and try to have a witness the next time.

3. Reviving the Statute of Limitations: States have differing rules about how long a creditor can sue you over a debt, with most limiting the period to three to six years. By making a payment on an old debt, or even acknowledging that you owe a debt, can revive that statute and start the time all over, leaving you vulnerable to a lawsuit. Make sure you know the laws for your state when dealing with old debts.

If your debt has Officially become a time-barred debt, the collection companies must leave you alone for good! But that doesn’t mean they will. If you know the statute of limitations for your state, you have power. If your debt has passed that point, you can say to your debtor, “The statute of limitations is gone. Do not contact me again.” As easy as that!

Knowledge is power! Use yours!

Paul Daniels

5 Comments »

  1. […] going bankrupt. This is one factor which greatly influences your credit rating. When this happens, your score is deducted with a total of 200 points or more, which is usually […]

    Pingback by How to Raise Credit Score » Blog Central — September 8, 2008 @ 4:33 pm

  2. This is helpful. Thanks for posting this one. Financial problems are giving me a headache. This is helpful in making my credit score improve.

    Comment by Joel Gray — June 14, 2010 @ 8:21 am

  3. Hi Admin

    I am Ryan Jones and I am a financial writer . I love to write unique articles on different financial topics and for that I was looking for some good finance sites/Blogs to post my unique contents as a guest post while doing that I have checked your site http://www.creditrepairprogram.net/ and I found it very informative . I want to congratulate you for making your site meaningful with such good contents . I will be very thankful to you if you can give me a chance to share my financial knowledge to your site as a guest post and in return if you want you can also share your financial article to my site with your website link . So please let me know if you can do that for me.

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    Comment by Ryan Jones — February 2, 2011 @ 7:27 am

  4. Hi,

    please can someone email me regarding guest blog post opportunities.

    Thanks,

    Comment by Payday Loans — April 19, 2012 @ 10:34 pm

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