Repairing Your Credit Score


Re-establishing your credit score is not impossible, despite of what you might have heard otherwise. It is a time-consuming and somewhat expensive process but it can be achieved with a measure of dedication and financial discipline. This article will step you through the process of repairing your credit.

The first step in the process is to get some kind of credit card. If your credit is really poor this can be a challenge but investigate alternatives like department store or gas card. There are some banks and  credit card companies  that offer card to those with moderately bad credit. These cards don’t have an interest-free period or cash-back programs but they will help you rebuild your scores.

Once you have some kind of credit card you have to use it, and use it wisely. Make sure you only buy what you need and can afford and pay off the card in full every month. This is the most important part of the process. If you only make partial or minimum repayments or skip the occasional bill your score will not improve. During this part of the process be sure to keep your debt to at most one-third of your credit limit.

It may also be possible to repair your credit by disputing information in your credit report. You have the right to challenge anything in your credit report and you may be able to improve your score by challenging incorrect charges or other entries. However this can be a time-consuming and labour-intensive process wit little or no guarantee of success.

Finally, try and save any credit cards that you still have. It may be possible to salvage some of your credit score by maintaining accounts that are still in good standing.

These steps should help you to repair your credit score and bring you back into good standing. In the worst cases, however, it may not be possible to repair your credit score. There is no point in trying last-minute plans to avoid bankruptcy if it is inevitable as you are only delaying rebuilding your credit and your life.

Rebuilding and repairing your credit can be done but it requires a careful and considered approach. The process outlined above will give you some ideas of how to approach this delicate problem.

photo by Casey Serin

 

Written by Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER
and FACEBOOK
. Happy investing 🙂

Jon the Saver

This post was written by yours truly, Jon Elder. My mission is to help you succeed in your personal finance life. Join me on the journey to financial freedom! You can subscribe through RSS FEED or EMAIL updates. You can also find me on TWITTER and FACEBOOK . Happy investing 🙂

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