There are a lot of fallacies when people talk about credit repair which may give a negative impact on the one who borrowed. These are the common ones:
Paying off Overdue Settlements Can Make Changes to Your Credit Right Away
You may think that if you pay off your remaining balances and overdue settlements to improve your credit, they still won’t work since they will appear on your account even if you have paid them. What must be done is to approach to the creditor and ask him or her to take it down for you in exchange of settling them all.
Disputing your Records
Disputing on the notes on your account might lead to something more perilous on your part. If you do dispute, all there is left are chances of taking down the positive ones. Though there are still some of those that will stay in your account, but if you wish to enhance your credit, you have to do better in your other accounts.
Closing your Accounts
If you opt to close your accounts, no positive outcome results into doing so like fixing your credit. All the more, it can endanger your records. When you close your accounts, specifically the one you have been using since then, your credit score will greatly diminish. On the other hand, creditors prefer those borrowers who have accounts that have been for ages since it shows that they are trustworthy.
One of the basis for credit scoring is how you use your credit limit. If you have a higher credit limit, you will have a better score for the reason that the balances are kept at a bay and not below the line.
Getting a New Credit
Although you can get good scores with different credit types, having more than what is needed might harm your credit score. Having a lot of questions may seem a bit off and dubious, the more if you have a lot of new accounts which may reduce your credit limit. As a customer, you have to apply a credit that you need and that you are eligible for it.
For now, focus on the accounts that you have, most especially the ones that you have been using for many years, and try to reach a good credit score. Ensure that you will pay your remaining balances and not wait for them to be overdue.
Looking for a Credit Repair Firm
A lot of people think that improving the credit score may not be down by themselves that it is hard to do so and that hiring someone else to do it is the best choice. They are swamped by the fact so they would go for hiring a credit repair firm, hoping that they can fix their issues right away. Instead, they do not have that special touch to make this big change. It all goes back to you and you alone can fix this by being accountable in paying your settlements and balances on time rather than paying the firm.
Enlist Your Name in the Electoral Roll
All businesses, including network providers would want to ensure they are providing their services to real people. Any sign of fraud or questionable identity will get you rejected. One of the simplest ways to verify your identity is to have your name listed on the electoral roll, which can prevent doubts.
Always Check Your Credit Report for Errors
In some instances, bad credit may be brought upon by other reasons beyond your control, like identity theft and fraud. It’s worth checking your credit report occasionally for errors that could pull your score down, such as name misspellings, missing accounts, and other. If there are suspicious activities on your account, you should check your credit file more frequently.
Ask a Guarantor’s Help
Lastly, you can ask a friend, colleague, or a family member to become your guarantor. Having someone with good credit that should back up your application will almost always translate to success. Just make sure you and the guarantor know what to expect, and understand your own responsibilities.
To know more about getting a phone contract with bad credit, here is a more detailed guide from Uswitch.