A good credit score is important for accessing loans, credit cards and other financial opportunities. If your credit score has taken a hit, don’t despair — there are steps you can take to improve your creditworthiness and get your score back on track.

The first step is to understand what factors are affecting your credit score so that you can address them directly. If you have a history of late payments, for example, you’ll need to make a concerted effort to pay your bills on time going forward. If you’re carrying a high balance on your credit cards, you’ll need to work on paying down your debt.

Once you have a plan for addressing the factors that are dragging down your credit score, you can start working on building positive credit history. This can be done by using a credit card responsibly, making regular on-time payments and keeping your balance low. As you build positive credit history, your credit score will slowly begin to improve.

It’s also important to keep an eye on your credit report so that you can identify any errors that may be artificially dragging down your score. If you see any inaccuracies on your report, you can file a dispute with the credit repair help bureau to have the error corrected. Keep in mind, however, that the free credit report does not include your credit score. You can purchase your credit score from each of the credit bureaus directly, or you may be able to get your score for free through your credit card issuer or a financial services provider.

Tax Implications of a Mortgage Refinance

When you refinance your mortgage, you may be able to get a lower interest rate, drop private mortgage insurance, or get cash out of your home to pay for home improvements or other expenses.

You should also keep in mind, though, that refinancing your mortgage may have tax implications.

When you refinance your mortgage, you will pay closing costs. These costs may include loan origination fees, appraisal fees, title insurance, and other fees.

In most cases, you are able to deduct the cost of mortgage interest and real estate taxes on your tax return. If you refinance your mortgage, you may also be able to deduct these expenses.

Before you refinance your mortgage, it’s a good idea to speak with a tax advisor to make sure that you can still deduct these expenses.

Making smart financial decisions and staying on top of your credit report are both key to rebuilding your credit score after a setback. With a little time and effort, you can get your score back on track and improve your financial opportunities.