Credit-building strategies along with well-grounded financial management will help you quickly recover your credit score.
1. Open a new checking and savings account. If you do not already have both a checking and savings account, open one of each at a local credit union.
2. Get a secured credit card. Once you have a little money put away, you can put some of it toward a secured credit card. The payments made to the secured credit card will be reported to all three major credit bureaus and go toward pumping up your credit score.
3. Get a unsecured credit card. The payments made to the unsecured credit card will be reported to all three major credit bureaus and go toward pumping up your credit score.
4. Do not exceed 25% of the available balance on your credit cards. Staying below 25% of the available credit increases your credit score.
5. Get a retail or gas credit card. Only obtain a card that clearly states that the transactions will be reported to all three credit bureaus.
6. Pay off your balance every month. Paying off your balance each month is great for your credit score because the credit bureaus will perceive you as a low risk, thereby increasing your credit score.
7. Review copies of your credit report from all three major bureaus. You can get a free credit report from each bureau for free at www.annualcreditreport.com.
8. Dispute incorrect information on your credit reports. Make sure you follow up with any reporting agency who lists incorrect information on your credit report or who continues to allow discharged debt to appear on your credit report.
9. Once you have gone a year or two post-bankruptcy, consider getting a car loan or line of credit. Obtaining a bank or credit union loan helps re-establish yourself with mainstream lenders and helps boost your credit score.
10. Beware of Credit Repair Services. You may receive offers from credit repair services promising to help repair your credit. Ignore all of them because you can rebuild your own financial future for FREE. In this case, DIY is often best.
