Continuing from PART 1 of this article sent on 8/14, this week we want to provide information about repairing your credit. However, know that you are always welcome and encouraged to contact us if you have any questions, concerns, or need assistance repairing your credit.

Negative information on your credit report can be frustrating when you are trying to qualify for new credit, a higher credit limit, or loans. Situations can vary, depending on the type of financing. In general, negative marks can stay on your credit report for seven years.

All negative marks on your credit report are the same. Some affect your report for different periods of time. Hard Inquiries – When applying for new credit, a financial institution may pull your credit report. This can result in a hard inquiry on your report. This isn’t a long-term issue for your credit, but it does have a minor impact – a few points. The good news is hard inquiries will only stay on your credit report for approximately two years.

If you are applying for financing and have multiple inquiries on your credit report, hard inquiries within a 45- day window will only count as one inquiry.

Late payments, past-due, and collections – Delinquencies, like late payments and accounts sent to collections, stay on your credit report for seven years. The longer a bill goes unpaid, the more impact it will have on your credit.

Foreclosure – Losing a home to foreclosure can be devastating to a family and can have lasting effects emotionally and financially. This type of negative mark on your credit can remain for seven years.

Bankruptcy – Bankruptcies can affect your credit report between seven to 10 years. How long depends on what type of bankruptcy you file.

Contrary to what you may see online, there are no quick fixes for credit issues. The good news is that your positive steps today can help you manage your debt for years to come.

Earlier in this article, we learned what goes in your credit history and the types of information that can positively and negatively affect your credit score. With that information, you can begin the process of rebuilding good credit.

The biggest steps to credit repair are to get a realistic picture of where you are, increase your financial IQ, take control of your spending, and then, take action.

Rebuilding your credit includes starting immediately to pay your bills on time to avoid causing even more damage to your score. Remember, your payment history is the most heavily weighted category contributing to your credit scores.

This also builds up a positive credit history to help you in the long run. Next, you want to use your current credit responsibly. Be sure to keep a low or even a zero monthly balance on your accounts, if possible.

As you work to rebuild your credit, work to use your credit responsibly – this will contribute to strengthening your score.