Here is How to Rebuild Your Credit:
1. Correct errors on
your credit report. Your report must prove to the lender that he will get his
money back.
2. If turned down
for credit within 30 days, you can get a free copy of your report to find out
why. Otherwise you can get a copy for $8 from the credit bureau.
3. One option to
build credit history is to piggy-back onto someone who already has a good credit
and is willing to co-sign. Just remember that if you default, their credit
suffers.
4. With co-signing,
you make payments on or before the due date. Do not pay in full untill the bill
actually arrives since this completes the billing cycle and establishes 'pays on
time' on your report.
5. Ask the co-signer
to repeat the generosity (if necessary). Then create a debt, wait until the
first bill comes, pay it off in full. Keep repeating until you no longer need
the co-signer.
6. Another method to
create history is to locate a financial group who offers a 'secured credit
card'. With this option you deposit money into a savings account. Your credit
limit then equals your savings.
7. Using the secured
credit, create a debt on the new card; wait until the first bill comes; pay the
bill off in full or make payments; repeat until you can establish unsecured
credit.
8. Some retail and
gasoline credit cards are not revolving (do not carry a monthly balance) and
sometimes are easier to obtain than regular cards. Over time they can help
establish history.
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