Apart from interest and principal amount of commercial mortgage, there are certain fees that borrower will have to bear. Some lenders charge about 0.5-1.5% of mortgage as a processing fee. The amount varies with lenders. Some lenders do not even charge processing fees. The borrower is also charged for valuation of property and preparation of legal documents. Some lenders also charge early redemption penalties. It will be necessary to read well between lines to be aware of such clauses.

Available with variable and fixed rate options, commercial mortgages are repaid in a variety of methods. The borrowers can choose from paying fixed monthly payments of both interest and principal as in a repayment mortgage, or only interest as in interest only mortgage. The manner in which final payment is made classifies methods into endowment mortgage, individual savings account mortgage, and pension mortgage.

The owner or proprietor of organization taking commercial mortgage must have a good credit standing. Since owner plays an important role in management of organization, lenders would study policies framed by owner. The organization as a whole must be well run and managed, and must have a good credit history. Lenders generally demand audited accounts and bank statement showing dealings of business. A copy of balance sheet will accompany these documents. If demanded, future projections for company will have to be furnished.

Lenders usually charge a deposit of 20-30% of amount of mortgage. Once organization decides to take up commercial Mortgages, it must start preparing for deposit. All documents must be updated to make approval process easier.

The paragraph above dealt with entries in credit report not conforming to person. Next, we deal with case when there actually is a debt that has not been paid. The debt must be paid up as quickly as possible. Delay beyond a month will make payment inconsequential because credit reports will incorporate defaults, thus making bad credit irreversible for a period of about six years.

Credit counseling will be beneficial for people who are not much aware of various options available to them. Various credit-counseling agencies are available on net and on phone. They even conduct personal meetings with clients. After having a chat on problem being faced by client, they suggest viable solutions. However, client can refuse using solution if they do not find it useful.

Prevention is better than cure. Certain steps may be taken to prevent credit rating from worsening. Only a few loans must be taken. The number of debts will vary with income capacity of every individual. Regularity in payments will also have a positive impact on credit rating. A considerable time gap must be maintained between any two loans or mortgages. Having too many loans with a shorter repayment period can have serious repercussions for finances. This too will affect credit rating.

These will not clean up credit report altogether, but will at least help to make a small dent in Bad credit history. With a concerted effort over a period of time, credit history will transform.