Credit, aka creditworthiness, is your ability to borrow and repay. It refers to the trust that a party has in your ability to pay your bills in a timely manner. Your credit score is one measure by which your financial health is evaluated. Your credit report is your financial history, which your credit score reflects. It is a record of your debts and bill payments. If your credit appears to be damaged, here are three things you can do to repair it. 

1. Assess and correct errors.

It is possible that there may be an error on your credit report. For this reason, it is important that you review and assess the report for yourself to find the reason for the damage. If you find an error, you may dispute it by providing evidence of the error to support your claim. The error would then be corrected or removed from your credit report. 

2. Improve bill payments.

Bill payment history constitutes a large part of your credit report. If you have a history of making late payments, you can change this behavior to repair your credit report. A few ways to become better at paying bills are to set reminders in your calendars and phone, and by automating bill payments. 

3. Address delinquencies.

Delinquent accounts/debts are those that are not being paid or have not been paid in a significant period of time. An account may be considered delinquent after a period of a few months of missed payments. If you have delinquent accounts, you can improve your credit report by paying off the accounts or bringing them current. 

There are many ways to repair a credit report. Assessing and correcting errors, improving bill payments and addressing delinquencies are a few ways to begin repairing your credit report. If you would like further guidance, feel free to schedule an appointment at drewbersolutions.com. For everyday tips to save money, eliminate debt and build wealth, follow Kelly at www.instagram.com/kellyfowler360.