The unfortunate but TRUTHFUL reality is that many individuals have a lower credit rating than they would like. This is caused by issues related to high debt balances, several late payment(s) and other related issues. If you have a very low credit rating? then you are surely wondering what steps you can take to greatly improve your standing with the Federal Credit Bureaus. While there are several steps available for you to consider, making timely payments on your home mortgage. This will have a great impact on your credit!! Here are four unique ways:

(1) Showing Financial Responsibility:

First, when you make timely payments on an account, including your mortgage, you are proving your financial responsibility. Previous issues with late payments, collections accounts and other similar credit events may have indicated that you are a credit risk to lenders, but you can prove your responsibility through regular mortgage payments.

(2) Reducing Outstanding Debt Balances:

High debt balances are another common request you credit ratings may be lower. When you make your mortgage payments on time, you will effectively reduce your outstanding balance on what may be the largest single debt that you have. This can have a tremendous impact on your rating over time.

(3) Preventing New Derogatory /Bad Credit Events(ex: Late payments)

When you are trying to improve your credit rating, the last thing that you may want is to have additional derogatory credit events listed on your credit report. Making your Northern MN Lakes home mortgage payments on time each month will prevent new late payments from being shown on your report. Establishing a solid new credit history from this day forward will help you to rebuild your credit rating.

(4) Stretch - Out or Increasing The Length of Time Between Older Credit Events:

As you regularly make your payments on your mortgage each month, more time will elapse between any blemishes or derogatory events on your credit report. Essentially, you will be making those derogatory events dated, and you will have a recent history of positive activity. Increasing the length of time between the present and your derogatory credit items is a great way to boost credit scores.

These are all ways that making timely mortgage payments can greatly boost your credit rating, and you can apply these concepts to your other outstanding debts as well. Your mortgage consultant can help you to learn more about your current credit report & steps that you may take to boost your scores.