Doug's Credit Center Blog

How Can I Repair My Credit From Past Due Bills?

Past due bills can have a significant impact on a consumer’s credit but this does not mean that a consumer cannot compensate in other ways. Past due bills are only one component of a credit score which is comprised of many different parts. Credit scores are extremely important for everything from getting approved for an auto loan to renting an apartment.

That is why it’s important to address any past due bills when you’re looking to improve your credit, which often times means doing the following:

  • Updating your accounts
  • Strengthening various areas of your credit report
  • Keeping up with your payment history
  • Waiting for your work to pay off

By executing these simple points almost anyone can begin to see improvement in their credit score and be that much closer to getting the best car loan deal or home financing they could every imagine.

Make all Accounts Current

The first step that a customer should take to recover from past due bills is to make sure that all of their accounts are current. Customers should pull their credit reports to look through all of their accounts and make sure that the accounts will be taken care of every month. Many accounts will allow customers to automatically pay them at certain times and this means that the customer can avoid late payments and late fees. If automatic bill pay is used the customer should always make sure they have a significant buffer in their checking account so that they never bounce a payment.

Improve Other Credit Report Areas

There is only so much that a consumer can do about their past due bills but they can improve other areas of their credit report. Paying down credit card balances is one of the best and fastest ways that someone can improve their credit report and it’s one of the few ways that are under direct control by the consumer. Credit reports can also be improved by increasing the customer’s existing bad credit lines and by applying for new types of credit.

Research the Payments

Sometimes payments are reported late when they were not actually late so a consumer should make sure that they were actually late on the dates that the creditor says that they were. If not the consumer should show proof of their payments to the creditor and ask the creditor to remove the item from their credit report. Most creditors are more than willing to work with consumers to fix their errors.

Wait to See Improvement

Once a consumer has done all they can to improve their credit they will simply have to wait until any negative items clear their account. Most late payments will clear the account within one or two years which means that the credit score will automatically improve once this time has passed. It is absolutely critical that the customer maintain their accounts during this time.

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