Have you let your credit
score decline? Are you finding it hard to get a loan? Do you not know
how to re-establish your credit? Now you can be back on the road to a
positive credit score. Whether you have bad credit, no credit, or good
credit there are tips and information for everyone.
Things You Will NeedTime
Your credit report
Step 1Order a copy of your Credit Report from each of the three bureaus. Correct and update all incorrect information with a 100 word explanation.
Get a secured credit cards. Secured credit cards are the quickest way to re-establish credit. A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account; you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.
Step 3If establishing new credit do not open accounts rapidly. Each new account lowers your credit score and looks risky if many new accounts are opened.
Step 4PAY OFF ANY DEBT. All debt on your credit card is noted on your credit report. Try to keep your debt to credit limit ratio high. Meaning try to keep your spending on your credit card low.
Step 5Pay your bills on time. Your payment history counts for over 1/3 of your credit report. Also, the more recent the payment the more important it is to your credit score. Missing just one monthly payment can possibly knock 50 to up to 100 points off your score.
Step 6Have installment payments. Installment payments are bills that are scheduled(cell phone, mortgage, etc.). These type of payments are great credit builders. They show you pay your bills on time and promptly on a set schedule.
Step 7Consider credit piggybacking. If you have a family member or friend who has good credit, low debt and solid employment, ask your family member or friend to add you on to a credit card with a low balance. This will allow you to piggyback off of your family member or friendÃƒÂ¢ Â€ Â™s good credit after your bankruptcy is discharged. However, be mindful, if your family member or friend is late on a payment or unable to make a payment, your credit will suffer as a result.
No one should have to live with bad credit. Follow these basic and easy steps and you will be headed back on the path to good credit in no time.
Tips & WarningsMonitor your credit score to make sure no identity theft or mistakes are on your credit score.
Do not allow people to make inquiries about your credit score unless absolutely necessary.
Avoid "fix credit" scams.