Should I pay off old debts first?

Do's and Don'ts When Trying to Repair Your Credit

When you are trying to improve your credit there are many different things that you should keep in mind. Many people learn these lessons the hard way, but if you know these things going in you can save yourself a lot of time as well as stress and grief. Some important things to know about dealing with creditors, credit bureaus, and your credit report include.

• Use writing. Never pick up the phone and call a credit bureau. You want to use writing so that you have proof of all of your correspondences. Always use your own words and language that you understand. Contact the credit bureau on your own behalf.

• Use your own formatting. Many people think it would be better to use special letterhead or correspondence from a lawyer, but this is not the case. Use your own paper and your own words every time.

• Never use legal language. This may have the creditor place a red flag on your account, which means they think you are trying to get out of a legitimate debt.

• Never call the credit bureaus. Remember how important it is to document everything. Even if you are told to get in touch with the bureau by phone you should do it by letter so you can keep a record of everything that is said between you and the bureau.

• Avoid applying for new credit. While you are disputing credit report issues or trying to improve your credit you should avoid applying for new credit at all costs.

• Avoid threatening a credit bureau. Threatening the bureau will get you no where. Instead just do what you need to do and be patient.

Repairing your credit is not just a matter to sticking to these rules some of the time but all of the time. Having good credit is a way of life, not something that you do for a short period of time. You have to be dedicated to the process of improving your credit. Being disciplined means keeping your credit to debt ratio low, keeping only secured debts, and avoiding applying for loans or accepting credit card offerings just because they are available to you.