A person`s credit history will always be an important factor when lenders consider granting a loan. It demonstrates the ability and desire to make credit payments according to agreements made in the past. Therefore, it`s important to spend the time necessary to develop a positive credit status and to repair any poor credit history listed in a credit report.

Here`s the factors to consider in maintaining good credit and for repairing any poor credit.

1. Time

Keep in mind that it will take some time for bad marks in your credit file to be removed. It also takes time and effort in the process of having derogatory credit removed. And, you`ll need some time in making payments as agreed to show positive credit behavior, six months of on-time payments looks good to a lender.

2. Work

It will take some work to stay on top of your credit payments and always stay vigilant to avoid being late on a payment that could then be detrimental to your credit status. If you`re going to be late on a payment, do everything possible to contact the lender and work out an agreement for a partial payment or some other means to stay current on your loan or credit card. Many people have been surprised to find that with just one phone call, they can make arrangements to re-arrange their payments, make a partial payment, change the payment date, or make other accommodations to fit their situation (but that phone call has to be made first).

3. Patience

This goes right along with time. Repairing credit and maintaining good credit is a process that just doesn`t happen overnight. If you don`t agree with something on your credit report, you have a right to dispute that item. If you dispute an item on your credit report, it will take time to be resolved (around 30 days and it may not be resolved to your satisfaction). Every time you apply for a loan, the application process will require patience (if you try to rush this process, you may get a quick "no", rather than a thought-out "yes").

4. Wisdom

Use credit wisely. Don`t overextend yourself. Don`t say yes to every loan offer you get. Watch out for high interest credit cards (or agreements where the rate raises substantially over time). You can find lower interest credit in the form of vehicle loans, mortgages, or home improvement loans. Think about each purchase you make in light of it?s impact on your credit. Ask yourself, "do I really need this?" Most importantly, keep in mind that less debt is just as important as having extra spendable cash on hand.

In summary, use your credit wisely and make your payments on time. If there`s bad marks on your credit report, make a resolve that from now on everything will be paid on time. If you have a financial emergency, call each lender and work out an arrangement to get through until you get "back on your feet." If you disagree with any bad credit on your report, dispute it. In the end, you`ll want to make this a long-term commitment concerning credit and you`ll then find that whenever you need to borrow money, it will be there for you. It may not happen overnight, but if you work at it and pay attention to the details, it will happen.

Copyright (c) 2006.