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Bad Credit Rating? Borrow These Six Tips to Repair Your Credit

Bad Credit Rating? Borrow These Six Tips to Repair Your Credit

Why is it that you always seem to find out that you have less-than-stellar credit whenever you need better credit the most? You know, like when you’re applying for a mortgage or trying to rent an apartment or get financing for well, anything?!

Whether you’ve recently received a resounding “no” when it comes to your credit or you’re preparing to apply for financing in the future, now is the time to start working on repairing bad credit. Frankly, it won’t happen overnight, so the sooner you start the better.

Kickstart your own personal credit repairs with these six tips:

1. Know Where You Stand

You can’t fix what you don’t know about, right? So, start repairing your credit by obtaining a free copy of your credit report. This report will show you exactly what your credit rating is, along with listing all open credit accounts you carry. Scour your credit report to make sure all information is accurate, because – if it’s not – you can formally dispute any errors you find, which may actually boost your credit repair process.

2. Understand the Process

Working on repairing credit is a bit like working on your fitness – you shouldn’t expect overnight results. Negative marks on your credit, like late or missed payments, typically last seven years. So, it certainly will take time to remove those marks. But, don’t be discouraged. Stick to your positive credit program and you will see results!

3. Pay Bills on Time

One way to make your credit history turn into ancient history? Pay your credit card bills on time, every time and never look back! When you’re trying to boost your credit score, there simply is no excuse for paying bills late. You can set up automatic payments or payment reminders to ensure you pay each bill when it’s due.

4. Pay More than the Minimum

If paying your bills on time is the most important step toward repairing bad credit, paying more than the minimum payment is a close second. It’s nearly impossible to chip away at credit card debt if you pay only the minimum amount that’s due each month. If you don’t have great credit, it is likely that you’re paying a lot of interest on balances that you’re carrying from month to month. Pay more than the minimum to make a bigger impact on those balances.

5. Stop Using Credit

To repair your credit, we’re not suggesting you close all of your credit card accounts, but we are suggesting you stop using them! Actually, available credit is a good thing. When a credit bureau sees that you have available credit, but you are not racking up a balance against that credit, you’ll appear as a responsible borrower and may see an increase in your credit score over time.

6. Don’t Open New Accounts

OK, this one should be a no brainer; but, since we suggested keeping current credit accounts open and not using them, we’ve just got to go here, too. Available credit is a good thing, but if you’re trying to repair poor credit, the last thing you want to do is tempt yourself by opening up another credit card. Resist the urge!

It may take seven years to remove negative marks from your credit history, but following these six tips will help you start to make repairs to your credit in no time at all!

This post is sponsored by PA Preferred Mortgage:

Pennsylvania Preferred Mortgage is a full service mortgage banker and is a member of the Prosperity Home Mortgage, LLC family. Specializing in residential and refinance loans, Pennsylvania Preferred Mortgage offers a wide range of mortgage products, including fixed and adjustable rate mortgages, jumbo loans, Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, and renovation financing. Learn more at www.papreferredmortgage.com.