Re-establishing Your Credit Is Not As Hard As You Think

By Mike Wayman

If you find yourself needing to re-establish your credit, it isn’t as difficult as it seems. Following a few simple steps will help you get your credit back on track.

If you don’t have one, get a job and establish a history of work. Order a credit report from each of the credit agencies. Correct and update your information, and submit a 100 word explanation to tell your side of the story. First, pay all your bills on time. Late payments over 30 days affect your credit. Open a savings account and make regular deposits. Open a checking account and don’t bounce any checks or go below the minimum balance. Reduce the number of credit cards that you carry. Avoid bankruptcies, tax liens, and collections. Bankruptcies stay on your credit report for 10 years. Collection accounts and paid tax liens stay on for seven years, and unpaid tax liens stay on forever.

Write to your creditors requesting that they reduce your credit. Ask a family friend or relative to co-sign for a small loan to help you re-establish credit. Make your payments on time. Get a secured credit card, and make your payments on time. And last, get a credit report once a year.