10 Credit Repair Mistakes You Need to Avoid: What Not to Do When Fixing Your Credit

1. Don’t ignore your credit reports

Failing to regularly check your credit reports is a major mistake. You need to know what’s on your reports to identify errors and track your progress. Get your free annual reports from the three major bureaus and review them carefully.

2. Avoid disputing accurate negative information

Only dispute items on your credit report that you believe are truly inaccurate. Attempting to remove legitimate negative information is considered fraud and can get you in legal trouble.

3. Don’t fall for credit repair scams

Be wary of companies promising to “fix” your credit overnight or remove accurate negative items. Legitimate credit repair takes time and effort. Avoid any company making unrealistic guarantees.

4. Avoid closing old credit card accounts

Closing old accounts can actually hurt your credit by reducing your overall available credit and credit history length. Keep old accounts open, even if you don’t use them regularly.

5. Don’t max out your credit cards

Using more than 30% of your available credit can negatively impact your scores. Aim to keep utilization low across all your cards, not just the overall percentage.

6. Avoid applying for new credit excessively

Too many hard inquiries in a short time can ding your scores. Only apply for new credit when absolutely necessary while rebuilding your credit.

7. Don’t neglect making timely payments

Payment history is the most important credit scoring factor. Set up automatic payments or reminders to ensure you never miss a due date on any of your accounts.

8. Avoid paying off collections without a plan

Simply paying off a collection account won’t remove it from your credit report. Negotiate a “pay for delete” agreement in writing before paying, if possible.

9. Don’t cosign for others

Cosigning makes you equally responsible for the debt. Avoid putting your own credit at risk by cosigning loans or credit cards for friends or family members.

10. Avoid giving up too soon

Credit repair takes time and persistence. Don’t get discouraged if you don’t see immediate results. Stay focused on your long-term goals and keep working at it consistently.