Rebuilding Credit

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Dave Zwierecki
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Rebuilding Credit
Rebuilding Credit - Rebuilding credit is a problem that is faced by many consumers all the time. Whether a bad marriage, a medical problem, divorce, health issues, poor economy, loss of job, etc... caused your credit to become bad and/or destroyed, there is hope for you to rebuild your credit. Rebuilding your credit usually can not happen overnight but with time, knowledge and a little work you should be able to rebuild your credit within a year or two. Read throughout the page for tips on rebuilding your credit and getting your credit rating back to where it once was.

The first and easiest thing you can do to rebuild your credit is to obtain a secured credit card. The card is secured by funds that you deposit with the lender in order to guarantee repayment. After 6 months or so the secured card generally will become a unsecured card as long as payments were always on time.

If your spouse or significant other has good established credit, they can request that you be added to their account. This will help to establish a good credit history for you by adding an established tradeline to your credit.

Establishing Credit - Everyday many young people are faced with the problems of building and establishing a credit history. One of the easiest ways to begin building a credit history is to apply for a couple of credit cards. Some of the easiest credit cards to apply for are a Capital One credit card and a Household Bank credit card. By obtaining a credit card or two and using it responsibly and wisely you will be able to establish a credit history and an excellent credit score in no time at all.

Once you have obtained a secured credit crad, you may be eligible to qualify for a retailer's store card as well. By maintaining some credit and managing it properly, you can effectively raise your credit score and establish a credit history.

Rent to own centers are another great and easy way to establish credit although the prices you pay for the items there are going to be a little higher then if you just bought them for cash. But think of it as an investment in your future not just buying an item.

What contributes to a good credit score? - What contributes to a good credit score is a very common question. There are many factors that will help you maintain and improve your credit scores over time. The most important factor and probably the most obvious factor is your payment history. Make all of your payments on time and your credit score will improve or miss some payments here and there or miss them consistently, and your credit score will decline. Your payment history accounts for the largest chunk of your credit score. Your payment history determines 40% of your credit score. Therefore if the highest score you can have is an 850, your payment history can account for 340 points of your credit score, which is fairly close to have of the total possible score. So, you are probably asking then what else contributes to your credit score for the other 60%? Well, read on throughout this page and you will find out everything else that helps to contribute towards your credit score.

Your available credit line to outstanding debt on credit cards can affect your credit score. Optimally, you want to have credit card balances under 50% of the maximum credit line. This shows that you have the ability to manage your debt load.

The age of the credit accounts on your credit report play a major roll in your credit score. New accounts do not have a long payment history and will not show your ability to pay your debts over time. However, as these accounts age the payment history will have greater impact on your score.

Credit inquiries will affect your credit score negatively if they are excessive. When shopping for a mortgage try to limit your credit pulls to 3 or 4 and have them pulled within a weeks time. Mortgage credit pulls generally will not affect your credit score if kept to a reasonable level and done close together. If you are shopping for a car do not let every dealer pull your credit, credit inquiries from sources such as car dealers, department stores and pay day loan stores will affect your credit score negatively.


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 Information listed above is to be used for educational purposes only and is not guaranteed

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