Repair vs. Scores & Credit Mistakes

Yes, there is a difference between credit repair and improving your FICO credit scores. Doing credit repair can hurt your credit scores. And, making credit decisions without sound education can be devastating.

Why does knowing the difference matter?

If you’re making application for credit, credit scores should be your focus. If you are NOT planning an application for credit in the near future and your desire is to clean up old indiscretions and errors, credit repair should be your focus. This is geared toward the person seeking to improve their FICO credit scores.

Mistakes people make after looking at their credit report:

The biggest mistake I see people make is paying down or paying off COLLECTION ACCOUNTS. To FICO, a collection is a collection; $50, $5, $1000 – The biggest factor is the date of last activity on the collection.

Other MISTAKES I see people make when attempting to groom their credit in preparation for making application for credit:

• Stop using credit
• Canceling credit cards
• Lowering available credit lines
• Paying off installment loans
• Use a “FREE FAKO Credit Score” site

Educate yourself on the Pros & Cons of the above items before taking action. Credit education is your best friend when considering working on your credit in any manner.