Having a good credit history has its advantages when it comes to borrowing money, especially when you want finance for a home.

A good credit score increases your chances of not only getting your application approved, it also ensures that you can borrow with a mainstream lender and at a reasonable interest rate.

Sometimes however, be it through living beyond their means on fast credit, poor money management or even business ventures gone wrong, borrowers end up with a black mark on their credit history.

If you happen to get marked with a adverse listing on your credit file and want to improve your chances of getting finance, the solution is to put your file through the credit repair process.

Credit repair is often portrayed as a dark art, but the concept is actually simple: once you learn relevant industry regulations, you discover the different buttons you need to push in different situations. So, credit repair is actually a science, rather than an art.

Here are five credit repair secrets that will allow you to improve your chances of getting your home loan application approved;

Only incorrect listings can be removed

There are two reasons you may have damaging listings on your credit file – it was either correctly placed or incorrectly placed.

Unfortunately, credit providers won’t remove accurate information from a credit file. But they will remove inaccurate information, provided you know how to work with them.

Set realistic expectations for yourself, if you didn’t pay the credit card bill and the provider listed a default, it’s going to stick.

Credit repair can’t be done overnight

Removing incorrect listings is a process that takes weeks, not days.

While a good credit repair agency will move fast, they have to liaise with credit providers – and those providers can be big, bureaucratic organisations that operate at a slower pace.

Basically, if you aspire to get a mortgage, start your credit repair process at least 3 months before you submit your home loan application.

Creditors are willing to negotiate

Credit providers often take a pragmatic attitude to debts, so they might be willing to offer you friendlier payment terms, or even cancel some of your debt.

This sort of informal negotiation spares the credit providers the hassle of chasing you for money.

Part 9 Debt Agreements aren’t panaceas

Part 9 Debt Agreements are a formal renegotiation. Again, they usually involve credit providers accepting less money under a new repayment schedule. Discover more about debt agreements here.

This time, though, your name will be entered on the National Personal Insolvency Index and the agreement will be recorded on their credit file, severely damaging their borrowing prospects for at least five years.

If you go down the path of Part 9 Debt Agreements, beware of the long-term consequences.

Consumers can solve problems themselves

You might not realise this; you can do your own credit repair without engaging an agency.

You may find the process complicated, stressful and time-consuming. But it won’t cost you a cent.

Tell us: Enjoyed this article? Tell us what you thought about it.

And while you’re here, take our mortgage shredder challenge and discover how much you can save on your home and investment loans by using loansHub technology as your personal mortgage manager. To read more insightful articles, click here.

This article via Mortgage Business does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.