If you’re planning to apply for something that requires a credit check in the next few months, repairing your credit will be essential. When your credit or FICO Score isn’t in the best shape, your applications may be turned down or when they’re approved, you may have to pay a higher interest rate. This article includes some steps you should take to repair our credit.

Don’t Expect Immediate Results

When it comes to credit repair, patience is key. It can take up to 10 years for certain negative items to drop off your credit report for good. But that doesn’t mean your credit score can’t improve. It just won’t happen overnight. Keep in mind that paying off negative accounts is helpful, but doesn’t remove the negative items from your credit report.

As with many major goals, having the right mindset is key in credit repair. You’ll have to improve your financial habits so you can repair and maintain your good credit score. Going forward, it will benefit you to create a monthly budget and focus on sticking to it. Switching from credit cards to cash can help you better manage your money and ensure you spend with your means.

Get Help If You Need To

If you’re overwhelmed with the amount of debt you have, you may need to call in some help. A consumer credit counseling agency can help you get your finances on track and work with your creditors to negotiate a lower monthly payment. The credit counselor can even help you work out a payment arrangement with stubborn debt collectors.

Don’t Avoid Your Creditor

You may not want to talk to your creditors, but doing so is actually in your best interest. Your creditors want to get paid and are generally willing to help customers who are having trouble making payments. You may be able to work out a payment plan to get caught up on what you owe and reduce your payments going forward. But you have to talk to your creditors if you want to be able to work something out.

Stay Current on All Your Monthly Payments

Once a missed payment is on your credit report, it will stay there for seven years. While you’re working to repair your credit, be careful not to miss any of your credit card or loan payments. These missed payments will only hurt your credit score and make it tougher to get your credit on track.

Related: Why You Should Not Skip Monthly Payments!

Avoid Applying for New Accounts

When you make an application for credit, an entry is added to the “inquiries” section of your credit report. Since these inquiries are included in your credit score, applying for new credit can hurt your credit score temporarily. You may have to open up new accounts in your credit repair journey, but avoid applying for several accounts all at once. Space out your applications so your credit doesn’t take much damage.

Mix Up the Types of Accounts You Have

Your credit will improve when you show that you can successfully manage multiple types of debt. Aim to have both credit cards and loans on your credit report because this shows you can handle revolving debt and installment loans.

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