Rebuilding credit to prepare you for the future is so crucial right now. Having good credit allows you to be prepared for life’s emergencies and big purchases. Like I mentioned in a previous blog, you need credit to be able to show your credit worthiness to lenders. However, maintaining and managing credit is just as important.
Ok so, you got the credit and now it’s in need of major repair. Well, it can be done! However, the success of rebuilding and repairing credit depends on you. You have to be willing to do the work, make the calls, and the sacrifices. Easier said than done. I hear ya! Have you heard of this quote before?
“It’s not that I’m so smart, it’s just that I stay with problems longer.” ~Albert Einstein
Well, that’s exactly how you have to change your perception of why everyone else is able to do what they do and buy what they buy. I stated that to say it really takes hard work and self-discipline. Never give up! Some have to do more work than others to bring their credit back to par.
How do you repair credit, you ask? Well it depends on each individual situation. I’ve included an article from ehow.com that provides tips that should help you get started:
Pay all of your bills on time. Late payments (payments that are 30 days late or more) have a negative effect on your credit rating.
Reduce the number of credit cards you carry. Write to your creditors to request that they close your accounts and report this status change to all three credit-reporting agencies.
Avoid bankruptcies, tax liens (a lien for not paying state or federal income taxes or property taxes) and collections. A bankruptcy stays on your credit report for up to 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax liens will haunt you forever.
Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit. The total amount of available credit is considered by lenders even if you owe nothing.
Ask a family member or friend to co-sign on a small loan or credit card to help you re-establish credit. Make your payments on time.
Get a secured credit card to help reestablish your credit. You will have to keep a designated amount of money in an account that will be sufficient to cover your charges. Make payments on time.
Get a yearly copy of your credit report to catch any errors (see ‘eHow to Obtain a Copy of Your Credit Report’).
- Got Credit? Why Shoud I Have It? (keciabland.wordpress.com)