When we first applied for the mortgage to build our Legacy West Villas home from concept, we had those few moments while waiting for the credit report to come back where we were sweating bullets even though it was the middle of winter.  It’s amazing what getting your credit report run can do to your psyche, even though our report came back with great credit.

When you’re credit isn’t perfect, though, you may want to run and hide from it and hope it never finds you.  This behavior won’t make you the world champion at hide-and-go-seek, but it will make you more at risk for a credit score that’s less than you deserve with mistakes and incorrect information on it.  You will never know it if you never even pull your report.

You can get your credit report from the following agencies and contact them directly if you need to dispute information in your report, place a fraud alert or security freeze on your credit file, or have other questions.

• Equifax or by phone at 1-866-349-5191
• Experian or by phone at 1-888-397-3742
• TransUnion or by phone at 1-800-916-8800

What’s on your credit report

Credit reports contain information about your bill payment history, loans, current debt, and other financial information. They show where you work and live and whether you’ve been sued, arrested, or filed for bankruptcy.

Credit reports help lenders decide whether or not to extend you credit or approve a loan and determine what interest rate they will charge you. Prospective employers, insurers, and rental property owners may also look at your credit report.

It’s important to check your credit report regularly to ensure that your personal information and financial accounts are being accurately reported and that no fraudulent accounts have been opened in your name. If you find errors on your credit report, take steps to have them corrected.

The information in your credit report is used to calculate your credit score. A credit score is calculated based on your:

• payment history
• balances that are outstanding
• length of your credit history
• applications for new credit accounts
• types of credit accounts (mortgages, car loans, credit cards)

It’s important to make sure your credit report is accurate because it can affect the accuracy of a credit score. You can have multiple credit scores, created by different companies or lenders that use their own credit scoring system.

10 mistakes to avoid when repairing your credit

Now that you have your report, you know what’s on it and you’re armed with the contact information for the three reporting agencies for your credit report it’s time to follow these steps to start repairing what’s wrong and make it right.

The following mistakes are ones that will make sure you don’t stall your own credit repair.  Choose to avoid these steps and you’ll be well on your way to a healthy score that will open up many different doors for you financially, employment-wise and may help curb the high cost of some of your insurance premiums!

01  Not Repairing Your Credit at All  
Perhaps the biggest mistake of all is putting off credit repair indefinitely. Even though most negative information will fall off your credit report after seven years, that’s still a long time to live with bad credit.

02 Disputing Everything on Your Credit Report
This is a tactic often used by credit repair companies. There are two problems with trying to repair your credit this way. First, it’s not believable. If you dispute too many items, the credit bureaus could dismiss your dispute as frivolous. Second, you don’t want everything taken off your credit report. Some positive accounts are actually helping your credit rating and disputing them could cause your credit score to drop.

03 Hiring a Credit Repair Company
Credit repair companies don’t have a reputation for good results. In fact, the Federal Trade Commission has been quoted as saying it’s never seen a legitimate credit repair company. Credit repair companies often make lofty promises that they can’t legally fulfill. In the end, you’re better off saving your money and doing it yourself.

04 Canceling Credit Card Accounts
A lot of people don’t realize that closing a credit card can be bad for your credit score, especially if it’s a credit card with a balance or one of your older credit cards. You’ll never improve your credit score by closing a credit card, so think twice about canceling one.

05 Playing the Balance Transfer Game
Transferring credit card balances to avoid making a payment is only postponing the inevitable. This tactic will only take you so far. Considering the balance transfer fees that are added to your balance each time you transfer it, the amount you owe continues to grow rather than shrink.

06 Cutting Up Your Credit Cards
A lot of people who go through a period of bad credit swear off credit cards. But, without them, you could have difficulty getting new loans or other types of credit. Not only that, using a credit card the right way will help rebuild your credit as you go through the repair process.

07 Missing Some Credit Card Payments in Lieu of Others
Prioritizing payments is smart. Skipping some payments for others is not. If you want your credit to improve, you should not miss payments. Your credit will continue to get worse instead of better. The only exceptions are accounts that have already been charged off or have gone to collections. If you have to choose between paying a collection account or paying an account that’s current, pick the account that’s current.

08 Sending Letters Without Certified Mail
When you send letters to credit bureaus, collection agencies, lenders, and creditors, you should always send via certified mail with return receipt requested. That gives you proof that your letter has been sent and whether it’s been received.

09 Not Checking Your Credit Report
Before you ever begin repairing your credit, you should check your credit report. Your credit report will help you figure out what items you need to focus on to improve your credit. Without a copy of your credit report, you’ll have a hard time figuring out where to start repairing your credit.

10 Filing Bankruptcy
You should not use bankruptcy as a credit repair tactic. Bankruptcy will not improve your credit and in some cases, your credit can get worse after filing bankruptcy. Since bankruptcy remains on your credit report for 7 — 10 years, you’ll continue having trouble getting credit cards and loans. Most lenders ask if you’ve ever filed bankruptcy, so even after bankruptcy falls off your credit report, it can still keep you from getting a loan.

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