If you have damaged your credit, you know the thought of rebuilding your credit can feel overwhelming. You’ve seen people on tv, maagazines, even online that offer credit repair that sounds too good to be true. How do you know who to trust and if you should sign up with a company or not? Did you know that you can take personal steps on your own to rebuild your credit without having to commit to a program? You should not have to pay to rebuild your credit with these proven steps.
One of the best ways to begin rebuilding your credit is by using the accounts you already have. If you don’t have any consider getting a low line credit card or secured credit card. This means you put money onto a credit card and you can only spend the amount on the card. It is basically a prepaid card but it will build your credit by having a card in good standing. It is an easy way to reestablish credit slowly and responsibly. It is important to realize the importance of paying all your bills on time during this period. Bills such as car insurance, phone, electric, and especially a car payment that is paid on time and in full for that month can improve your credit significantly. Don’t think these bills won’t matter because in the end, they can reflect negatively or positively on your credit report.
When you begin rebuilding your credit, don’t pay all the debt you have in one payment but rather gather the information for each account and set up a time when you will pay them all so they are never late again. Pay off the balance each month and that will bring up your credit score considerably. You want to prove that you are able to pay on time and pay the amount in full that is currently due, not just take a lump sum of money when you have it and pay a bill.