952-933-0944 info@norgaard.com

There is no quick way to fix a bad credit rating. 

It will take time to repair a low credit score. Quick-fix efforts can backfire, so beware of any advice claiming to improve your credit score fast. The best advice for rebuilding credit is to manage it, responsibly, over time.  It took time for your credit score to decline.  It will, also, take time for your score to improve.

Things you can do to improve your credit rating

Manage Your Credit Cards

  • Keep balances on your cards low. Don’t borrow over 30% of your maximum limit.  A high balance can reduce your score.
  • Don’t open up new credit cards,  just to increase your available credit: this could actually lower your credit rating.
  • Don’t close unused credit cards as a short-term strategy to raise your scores. Closing out too many cards at one time can lower your FICO score.
  • If you have higher credit card debt, see if your bank will turn them into an installment loan.

Pay Your Bills on Time

  • Delinquent payments and collections can have a negative impact on your FICO Scores. Most banks will report a delinquency after the payment has been missed over 30 days.
  • If you have missed payments, get current and stay current: the longer you pay your bills on time after being late, the more your FICO Score will increase.
  • Pay collection accounts in full. And, verify the creditor has reported the zero balance to the credit agencies.
  • Make sure your credit report is accurate. You can obtain a free credit report on line.
  • Older credit problems count for less, so poor credit performance won’t haunt you forever. The impact of past credit problems on your FICO Scores fades as time passes and as recent good payment patterns show up on your credit report.

Seek The Advice Of A Professional

  • Get consumer credit counseling if your debts are overwhelming, consumer credit counseling is an option for getting back on track.
  • “Credit Builder Loans”: These programs work!  Here’s how:  You take out an installment loan with a bank (often the bank will put this money into a CD).  The bank WILL report these payments to the credit agencies right away.  Because the bank is holding on to the money, there is no risk to them-and you get the money once the loan is paid in full.

Your credit history is a reflection of your ability to handle money.

The credit report is your report card that gives lenders a glimpse into how you will repay any new debt with them.

Repairing a low credit score will reduce the stress, additional fees, and paperwork that will be needed to obtain new financing. It may take a few months, or even a year, to repair a low credit rating but, if you plan on buying a new home, it’s well worth it.


Betsy Kozulla  NMLS #553703 Bell Bank Mortgage

350 W Bunsville Parkway Suite 650 Burnsvillle, MN 55337


phone: 612-720-1995