Things to do to Re-establish Good Credit
Its possible to re-establish your good credit but it takes time - sometimes over 18 months and you have to work hard. You need to prove that you become a financially sane person and get a lot of positive things on your credit report. It is a slow and painful process to reestablish your credit and you have to be persistent.
To reestablish your credit do the following:
- Pay off your debts: - start with bankruptcy, liens or judgments against you, that is anything that is under public records section of your credit report.
- Become cheap :- the best way manage your money and start reestablishing your credit is to save as much as you can.
- Pay with cash :- if you still have credit cards, pay off outstanding balances and close all but one or maximum two.
- Order a 3-in-1 or tri-merged credit report :- check it over carefully to see what kind of information it contains - if you believe there is an error, write the credit bureau and fill out a dispute form .
- Establish a savings account so it serves as evidence that you can handle money and if necessary, use as collateral.
- Establish a personal contact with the branch manager or loan officer of the bank where you keep your account
- Contact creditors whose accounts you have paid off earlier to help you reestablish some credit - they may consider it and will look at how regular your payments were before problems arose and how long it took to resolve those problems.
- If you have to, ask someone who still believes in you, to cosign for you - make sure this unfortunate person reads about cosigning loan first.
- Get secured credit card - it is an excellent way for someone with bad credit to quickly reestablish a good rating.
- Apply for a retail card offered by gas stations, appliance and furniture stores - Shell, Mobil, Best Buy, Wicks Furniture and the likes are usually easy going and may extend you a credit even if you have credit problems - if denied, try to purchase an item on a layaway plan, the store will be more inclined to provide you with a charge card if you prove reliable.
- Pay your bills on time: - that is needless to say and explain, the most vital part when someone tries to reestablish credit.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. THIS IS IN NO WAY GIVING ANY LEGAL ADVICE OR REPRESENTATION. THE INFORMATION CONTAINED HEREIN WAS COMPILED FROM VARIOUS ARTICLES. FOR ANY LEGAL ADVICE OR REPRESENTATION SEEK YOUR OWN LEGAL COUNSEL.