Personal Credit Coach

Tips for Repairing Your Credit

Stephen Leifer - Thursday, May 12, 2016

Repairing your credit can be a challenge, but considering how important your credit score is, repairs are well worth the effort.  What are a few of the things you can do to improve your credit score?

1.  Pay Your Current Bills on Time

The best way to improve your credit, regardless of what mistakes were made in the past, is to pay all current debts in a timely manner.  If you are facing a charge off of a debt, do your best to arrange a payment plan and keep payments current.

Unpaid debts can “blossom” into multiple listings on your credit report if they are sold to a collection agency.  One debt can cause as many as three negative marks on your report.  So even if you think “it’s just one bill,” it could create a great deal of problems for you down the road.  Moving forward, do everything you can to pay your bills on time.

2.  Monitor Your Credit Report and Monthly Statements from Credit Cards

You should check your credit report no less than semi-annually to ensure everything is accurate and any paid debts are marked “paid in full” on your credit report.  Lenders want to know you paid, even if your payment was late or after court proceedings.

3.  Debts Charged Off ?

You still owe debts that have been charged off.  Charge offs typically occur after an account is 120 to 180 days overdue.  Despite creditors removing your debts from their books, debt collectors can still sue you for the money you owe – at least until your State’s statute of limitations runs out.

Unpaid charge offs are worse than paid ones.  They can make it difficult to make a major purchase using credit, rent an apartment, or apply for a job.  Most businesses are willing to overlook a previous history with late payments if you eventually paid what you owed, but they're usually less forgiving if you did not.

Have more questions about repairing your credit? I can help!

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