TIPS ON HOW TO REBUILD YOUR CREDIT

Rebuilding credit

Here are a few tips on how to get back in the good graces of the credit agencies. Remember that no matter what your financial situation, it’s important that all bills be paid in a timely fashion.

• If you did file bankruptcy, make sure that the reaffirmed pre-bankruptcy debts are paid in a timely fashion. Although a bankruptcy filing will stay on one’s credit report ten years (chapter 7) and (seven years for chapter 13), new credit history has greater weight than old history.
• Open a checking or savings account, as this will show creditors that you can handle money responsibly.
• Apply for a gasoline card, as this is relatively easy to obtain. Always make sure the charges are paid off monthly as to show a record of responsible bill paying and so that the monthly interest fees don’t add up.
• Apply for a secured credit card. This type of credit card is secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit, and keep a balance of between 100% and 200% of the total amount of credit desired.

It’s important that you know its ok to use that newly acquired credit card. Minimal use can prove to be beneficial for small purchases that can easily be paid off in full. Not only does this show responsibility, bills paid in full and one time will look real good on the credit report. And by all means make sure you live within your means!!!