How does Reputation management work when you have become a victim of Identity Theft?
Can I avoid making a mistake in fixing my credit after I have discovered Identity Theft?
If you have just found out you have been a victim of Identity Theft or if you’re in the middle of the process of trying to fix it, there are some mistakes that you want to avoid in trying to fix your credit with Reputation Management.
This is a top ten (10) list of mistakes that people make in credit repair:
1. Not repairing credit at all
2. Failing to check your credit report
3. Dispute everything on your credit report
4. Not making payments on credit cards
5. Not using certified mail in contacting credit agencies or credit bureaus
6. Hiring a credit repair company to fix everything
7. Cancelling all credit card accounts
8. Transferring balances
9. Cutting up your credit cards
10. Filing bankruptcy
None of the techniques above are good ways to fix your credit, most of which will make a bad situation worse.
Let's look at each of these in greater depth:
Not repairing credit at all
This approach is sort of like putting your head in the sand. This unfortunately is one of the biggest mistakes trying to put off taking action indefinitely. This is not a good strategy. Bad credit will stay with you at least seven (7) years.
Failing to check your credit report
You won’t know the depth of you problem unless you check your credit report. A current credit report helps you with a starting point of what you need to focus on first. This is a must for credit repair.
Dispute everything on your credit report
This maybe a great tactic for companies that specialize in credit repair, but frankly this has more negative impact then positive. This is rarely believable that your entire credit history is bad, and do you really want “everything” taken off your credit history. This would seem to be overkill.
Not making payments on credit cards
This is not an effective Reputation Management strategy to fix your credit. You may have to prioritize your credit but skipping payments on some of your cards it not a good idea, because your credit Is likely to get worse instead of better. If you have to choose between an account that is collection or one that is current due to identity theft always choose the one that is current.
Not using certified mail in contacting credit agencies or credit bureaus
When you are dealing with trying to repair your credit ad you have contact with credit bureaus, collection agencies, lenders and creditors it’s a MUST to send documents and correspondence by certified mail return receipt requested. This becomes your “proof” that your letter has been sent and received.
Hiring a credit repair company to fix everything
Initially it would seem that hiring a credit repair company would be a smart thing to do, results would not seem to show “good results”. In fact, the Federal Trade Commission has been quoted “do it yourself and save some money”.
There are numerous Reputation Management Credit Repair Scams who prey on people and promise claims they are not able to deliver. Bottom line is, to fix your credit your better to do it yourself.
Cancelling all credit card accounts
If you value you your credit score, cancelling your credit accounts will have a negative impact on your credit score. It’s best to avoid this tactic.
Avoiding making payments by transferring balances is not only a bad idea but its postponing the inevitable. Transfer fees add up and will only get you so far. Your balances continue to grow each time you transfer.
Cutting up your credit cards
Getting rid of credit cards would seem to be a good idea. But your credit cards maybe the key to helping your repair and rebuild your credit.
Bankruptcy is not an effective repair tactic. Bankruptcy stays on your record for 7 to 10 years and will make getting credit even more difficult. Filing bankruptcy will have a negative impact on your getting loans.
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