Do extreme credit repair strategies work?

When it comes to credit repair strategies, a majority of people believe that extreme credit repair works.

It may be tempting to fix your credit with some extreme creditrepair tips. However, keep in mind that most of these so-called quick strategies will not be feasible in the long run.

In order to help you, here are some extreme credit repair techniques that you need to avoid:

Credit repair service

You will come across many credit repair companies promising to fix your credit in no time. Most of them make false advertisements about repairing your credit.

Remember, any agency that doesn’t let you know your legal rights for free should not be trusted. In addition, a big red flag is if they tell you not to contact a credit reporting company directly. Moreover, no credit repair company should ask you to pay before credit repair services.

Instead of hiring credit repair services, it’s better to check your credit report yourself. Keep an eye on any errors that might hurt your credit score.

Consolidation of accounts

Credit bureaus measure the amount of credit you have used against the total amount of credit available to you for calculating your credit score. This is known as credit utilization. In addition, they consider the average length of time your credit accounts have been open.

Due to these factors, account consolidation can adversely affect your credit score. Firstly, it can reduce the total credit you have available. Secondly, it can reduce the average length of time your accounts have been open.

In case you are consolidating everything into a new account, this is definitely going to hurt you. Almost 10 percent of your credit score depends on how much new credit you have applied for. 

Dispute of every negative information

Some credit repair agencies state that you can raise your credit score by disputing every negative item on your credit report. Even those errors that you know are accurate.

According to these agencies, credit bureaus must drop the disputed information from your report for 30 days while they investigate the claim.

This isn’t true. The negative information will remain on your credit report while it is being investigated. It will stay there when your creditors confirm their accuracy. 

Avoid the above-mentioned extreme strategies to improve your credit. If you want to know easy credit repair strategies, click here.