Ways to Rebuild Credit
Are you looking for ways to rebuild credit?
A lot of people fall into the credit trap by getting into a spending hole that can be hard to dig out of. It can be hard to repair the damage, but it isn't impossible.
Cut Your Credit Cards
First of all, stop creating new debt. Cut up the credit cards and work on paying down what you already owe. You have to break the cycle of spending.
Make Some Phone Calls
Next, contact your creditors and explain your financial situation. You may be able to get a reduced rate on your account or renegotiate the payment plan. Most lenders would rather get all the money they're owed than send you to a collector or have you declare bankruptcy, even if it takes you longer to pay than originally agreed upon.
Pay on Time
Whether you are able to renegotiate your debts or not, make a vow to pay your bills on time even if all you can afford is the minimum. The more on-time payments you have, the better your credit report will look.
Fix Credit Report Errors
Get a copy of your report and make sure there are no errors on it that are hurting your credit score such as incorrect account information. If there are errors, have them corrected ASAP. This is one of the easiest ways to rebuild credit.
Wait It Out
If you have blemishes such as bankruptcy and judgments on your file, you'll just have to wait for them to be removed. Usually, the magic number is seven years.