How to Fix Damage to Credit From Late Payments

Late payments for mortgages, student loans, credit cards or other bills can damage your credit. Your credit report outlines your borrowing, charging and repayment activities, and all of these things combined create your credit score. Unfortunately there is no quick fix to repair damaged credit, however, there are things you can do to improve your credit over time.

Instructions

1

Check your credit report and credit score so you know where you stand. Review your credit history to see how often you were late with payments and how much your credit score was lowered. Credit scores range from 300 to 850, with anything above 720 usually referred to as "excellent." Save this information to compare later on once you begin to repair your credit.

2

Start paying your bills on time as this is one of the most important factors in improving your credit. Late payments stay on your credit for seven years, but the more time that passes with on-time payments the less damaging previous problems can be.

3

Keep at least one of your credit cards, even if you have the urge to cut them all up. Using and paying off credit cards each month shows you can manage credit responsibly and may favorably impact your credit in the long term.

4

Create a budget for yourself so you don't spend beyond your limits. Make sure your income can cover all of your expenses each month. If you find it does not, reduce your expenses.

5

Set up payment reminders to help prevent you from being late with payments in the future.

6

Check your credit report and credit score at least once a year to monitor the improvement over time and compare with where you started.