Any Advice On Ways To Rebuild Credit?

Things like pay your bills on time and the like wouldn't be of much help to you since you say most of the money you earn goes towards household bills. Neither would something like cutting out luxuries be of much help either. I think what you should focus on [before you can comfortably start rebuilding your credit] is to save some money, stash it in an emergency fund. This will be your safeguard against falling back into debt in case of any emergencies.

I think that should be your first step. Once you have an emergency fund you can start working on rebuilding your credit.

 

Try to secure one credit card and use it for gas purchases only. Pay it off in full on the due date, rinse and repeat. This will show other credit companies that you are responsible, and you will get more offers in the mail. When you start to see them come in the mail, check your credit score. Chances are it will have gone up because of your activities with that one card.

 

I

I am in a somewhat similar position. I am trying to use store credit cards to buy small things and then pay off the bills when they come in. It shows the credit bureau that you can handle credit responsibly. Since I have employed this strategy I have been able to raise my score by a few points. I think just continuing to pay your bills responsibly and on time will raise your credit score over time.

 

Marry someone with good credit.
I joke.
But that was the quickest way for my husband to rebuild his low credit score. Within 6 months of being a partner on all my accounts, his credit score jumped like 150 points, and has continued to go up. Mine went down a LITTLE when we got married, but not much.
If you can consolidate any of your loans under an average interest, do that. (It is much tougher now than it used to be.) And then just focus on paying off a little bit of the principle with each payment. Once you are out of debt, focus on paying off your credit card in full each month. You will get the rewards (cash back or airline miles or whatever) and also raise your credit limit and avoid debt.
If possible - apply for a credit card that has the best cash back rewards and use the rewards toward your other debts.

 

Slowly pay off your bills if you can. You can attain a credit report online to see where you stand as well. Pay off debts one by one and get payments going. You can also get a loan for a new car and pay that off. But think of where your major debts are. Mine are student loans so that's where I'm going to start and by making payments. Most companies are going to be okay with you as long as you're making payments and trying to get it paid off. And by doing that, your credit should start going up and improving. If you get letters in the mail about overdue bills, make sure and pay those off. Also the bills you already have, especially internet, pay those on time. That really helps your credit score when you pay on time every time. I know it's hard because that's all there is, bills and more bills. But try little strides at a time. If you're able to pay a bill ahead of time, or in lump sum, do that too. There's also credit cards you can get and pay off from stores or companies.

 

You can get a secured credit card from your bank that will help you rebuild your credit. Once you have had the card for about a year you can ask your bank to issue you a unsecured card then go get another one but do not over do it. Only what you can handle.

 

This is a tough one. First of all, you must be willing to start off on a clean slate. In other words, it doesn't matter if it's a little too late, you must pay off all your previous debts. Once you've paid them up, never ever repeat the mistakes you did in the past. Don't jump into another debt just yet. Start small. Something you can pay as agreed upon. When you're ready for another big loan, your loaning history has been rewritten.

 

I am working with a mortgage broker right now to get my credit to the place it needs to be. She told me to make sure my credit card was paid down to 20% and to make sure all of my bills are paid on time each month. If you have to let a bill slide, make it a utility or something that will not show up on your credit report.

 

Since you have an existing credit card debt, then you must eliminate this debt first in order to raise your credit scores. Its not advisable to get a prepaid or debit card at this point since the money would have been used to pay off your debt. To eliminate your debt faster, you must cut down you household expenses to the barest minimum. Check how else you can save money - reduce electricity bill, buy generic brands, grow your own veggies, etc. At the same time, find a decent employment or at least make use of your time in a more profitable way. It's not an easy path to take, but regaining financial freedom is the only way we can enjoy our lives to the fullest.

 

The fact that you are able to pay your bills shows that you have a healthy liquidity challenges not withstanding. This means you should be able to join an informal cooperative known as merry go round. You can form one if one doesn't exist already and make sure that several people receive a lump sum in one payment cycle so that rotation will be faster. This can attract financiers if you craft a good business plan for the group you are involved with. Good luck.

 

Go over your report with a fine tooth comb. Verify the information. Are all of the collections accounts real and your actual collectible debt? If you have any reasonable doubt at all, challenge the entry. I strongly suggest you get a debt lawyer involved if you’re going to do this, as it increases your odds of success dramatically. But even without one, you’ve got a reasonable shot. Many Collections agencies don’t actually have the required documentation to prove you owe what they say you own, and as such, if you challenge it, they will frequently just delete the record. Every incorrect or unprovable bad record you can get removed will help your score

 

To rebuild your credit you need to assess your situation first. Assess how bad your credit is. You should also consider understanding your credit utilization ratio. You should then apply for a secured credit card and avoid missed payments. Make sure you diversify your credit.