How Credit Repair Affects Your Credit

Credit Repair
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2
 Min read
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March 6, 2020

Have you ever asked yourself… how does credit repair affect your credit? One would think the answer should be fairly obvious…The entire point of credit repair is to improve credit.But it might not always work out that way. In fact, there are times when working with companies that advertise credit repair that you could be advised to do things that will end up hurting your credit before it helps it. That’s why it’s so important to understand what credit repair really is and how to ensure that it helps you. Here are some important things to know about how credit repair affects your credit.Any action you take to improve your credit can be called credit repair.Find and dispute an error on one of your credit reports? You’re working on credit repair. Learn ways to get better credit scores, including old habits to break? You’re working on credit repair. So many of these things are in your power to do — and if you understand how credit works, then you can make sure your credit repair efforts actually help your credit. Here are a few things you can do right away to start working on repairing your credit:

  •    Make all payments on all accounts in full and on time every month — this is the highest-ranking factor in credit scoring for FICO® credit scores
  •    Review your credit reports from all three credit reporting companies and dispute errors if you find any
  •    Reduce revolving debt (such as credit card debt) as much as you can, as high balances on revolving debt can negatively affect your credit scores
  •    Try to handle any accounts in debt collections, something you can do on your own by calling the debt collections company and negotiating a settlement or repayment plan that you can afford
  •    Keep old credit accounts open to maintain a long history and only apply for new credit when you need it (although you shouldn’t be afraid to shop around for the best interest rates when you do)

You don’t need a professional or a company to help you with any of these actions. If someone tells you to do something for your credit that isn’t good for your finances — such as taking out a loan you don’t need — remember that credit isn’t that complicated. Things that are good for your credit should also be good for your finances, and any tips that say otherwise might be susceptive. But if you want to make sure credit repair affects your credit in a positive way, don’t fall for tactics that seem suspicious or guarantee fast success. Credit repair doesn’t have to take years, but it certainly doesn’t happen overnight. If you want to get started on your journey of improving your credit score, the first thing you should do is to see if any mistakes on your credit report hurting your credit score. The best way to do that? By signing up today at Dovly.com. It will give you all the insight you need to skyrocket your credit score, get better loan terms from lending institutions and pay less interest! So what are you waiting for? CLICK HERE and join Dovly now!

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