It may perhaps seem crazy, but opening up new lines of credit will aid you to rebuild credit. Following a bankruptcy or a period of time where you have had inadequate payment history in general, you need to reestablish a good payment history. In the credit world, you’re only as good as your last 6 months of installment payments. This means that even opening up small credit lines or other sub-prime credit lines (like the numerous credit cards for people with bad credit) and having to pay them on time for 6 months will aid you to quickly reestablish your credit.
Although getting a secured credit card is straightforward, it may not be what you require to rebuild your credit. A few secured credit cards do not report to the credit reporting agencies on a monthly basis. There are numerous ‘high risk’ credit cards that you can obtain easily. These credit cards generally come with an annual fee that ranges from $ 80-$ 150 and a higher interest rate.
In order to get the card with the cheapest yearly fee and interest rate, you need to attempt to go through your credit report and have the credit reporting agencies adjust any inaccuracies ahead of trying for your new credit card. This is a simple course of action that you can do yourself, with the guidance of a ‘do it yourself’ credit repair system.
Buying a credit repair system is a good investment as it will provide you with the most current and correct info. In addition, it is encouraged that you discover a credit repair system that presents you some form of ongoing support as you go through the process.
Credit repair involves locating the wrong info on your 3 credit reports, disputing the errors with each credit reporting agency, and adding good accounts to your credit to aid to enhance your score. The procedure can be fast as the Federal Credit Reporting Act demands that the credit reporting agencies address your grievances within 30 days. The common credit report contains between 3-5 errors. These errors can decrease your credit score by about 100 points!
Once you take this step, then you can proceed to apply for many credit cards. When you obtain your credit cards, use them liberally, and pay 90% of the balance off every single month. Over the following six months, you will observe gradual increases in your credit score. It might take a year or 2 to be in a sturdy financial position once more, but it will be really worth the time and effort.
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