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7 SIMPLE STEPS FOR REBUILDING CREDIT
Developing a positive credit history
when you have poor credit is not easy. Below
are seven useful tips for
rebuilding credit
quickly and hassle free! If you are
looking to learn what you can do to change
your spending habits, take the
money challenge!
1 - Always pay your bills on time. Any payment
that is 30 days late or longer will have a
negative impact on your
credit score.
2 - Don't carry as many
credit cards around
with you. This will help resist the
temptation to charge unnecessary purchases.
Also, close any credit card accounts that
you do not use and make sure that the credit
card company reports the closings of your
accounts to all three credit reporting
agencies.
3 - Try to
avoid collections and
declaring
bankruptcy. You also want to avoid tax
liens. A tax lien occurs when you do not pay
your state or federal income taxes. A
bankruptcy will stay listed on your credit
report for as long as 10 years. An account
that goes into collections will stay on your
report for seven years. Tax liens remain
present for seven years as well. Unpaid tax
liens will stay on your credit report
forever.
4 - Lower your available credit limits for
your credit cards. Believe it or not,
lenders will view high credit limits
negatively, even if you owe nothing!
5 - Apply for a small
unsecured loan with bad
credit or
apply for a bad credit credit
card. We suggest checking out the
Orchard Bank credit card. This is the
premier credit card for people with poor
credit.
** Make sure that you make all of your
payments in full, and on time every month!
6 - Apply for a secured credit card to
rebuild
credit. A secured credit card means that you
will have to keep enough money in your
account to cover your charges. Meaning, you
will not be able to charge what you do not
have. Learn more about
smart credit card use.
7 -
Get a copy of your credit report regularly
to make sure that you catch any errors or
outdated information quickly!
**Consumer Alert - FICO has
recently decided to
eliminate authorized user accounts from the credit
scoring model. This will have a major impact on
those looking to establish credit.
Related Reading:
-Stop
wasting money
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