When the credit bureaus determine your credit score, they take multiple factors into consideration. A large portion of this number is related to how responsible a borrower is with their credit – that is, if they pay their bills on time and if they have skipped any payments. With large credit accounts like car loans or a mortgage, the monthly bill can be quite high, leaving those who struggle with a bad credit history in trouble if they let their accounts go into delinquency.
One way to solve this problem is by refinancing your mortgage. Contact your lender and let them know that you intend on repaying your loan, however, you are struggling to make the monthly payments. They will be able to work with you to renew the terms of your loan, which often means that they will arrange for smaller payments over an extended amount of time.
Only offer to pay what you can afford, however, as agreeing to an unrealistic monthly payment for your amount of income will not help. Once you are able to send in the bills on time and for the correct amount, then the repair of your credit score will begin.