Are you one of the many people who have ruined
their credit rating? Bad credit habits, illness,
or a long period of unemployment has destroyed
the credit scores of many people.
Have you done so much damage that you think
you will never again be able to get credit again?
Fortunately that is not true, you do have options
and with careful behavior you can regain your
positive credit score. Done correctly it is actually
possible to repair your credit score in 12-24
Create an honest and realistic budget.
Figure out how much you make and how much you
need to make it through the month. Then figure
out where you can cut expenses. Pay yourself first
and put 10% in a savings account. Now with what
is left determine what 20% of your gross income
would be. This is the absolute most you should
be paying for your credit card debt. Spend wisely.
A realistic budget is your best weapon against
Clean up your credit report.
New legislation says you can get a free copy
of your credit report from each of the 3 credit
reporting bureaus once a year. Go to freecreditreport.com
and order your credit reports. Go over them carefully
to see what they have on report about you. All
of your credit is based upon these reports.
Look for errors, incorrect or misleading information
and make notes. Make sure your personal information
is correct as well. If you find errors, write
to the credit reporting bureau and explain the
errors to them. They should help you to get the
information corrected. If it is an issue with
a debtor or credit card you should address it
directly, in 25 words or less explain the problem.
The credit reporting company will report this
to the creditor. The creditor has 30 days to respond.
If they don’t respond the credit bureau
should clear the item off your record, If they
don’t insist that they do. If the creditor
responds you will go back and forth a bit until
it is resolved. Take the time to go through this
process it is worth the hassle.
Add positive information to your credit
With bad credit it can be tough to make positive
credit happen. Find a good secured credit card
and open an account. Then:
Make small monthly purchases
Pay the amount in full each month
Pay as soon as you get the bill
How long does it take to rebuild credit?
Depending on just how bad your credit was it
could take 6-12 months to repair up to possibly
24 before you can buy a house. In the scheme of
things this isn’t very long to wait. Rebuild
your credit carefully. If you follow these steps
you will successfully repair your credit.