Rebuilding Your Credit History One Step at a Time

Rebuilding Your Credit History One Step at a TimeTalking about credit is the last thing that you may want to talk about, but by not talking about it, it can keep you from getting the things that you want, such as a new car. You can pay cash for an item, but some people are not fortunate enough to pay out-of-pocket for a car. In order for you to rebuild your credit history, you will need to take it one step at a time. That way you will not feel overwhelmed and go back into the rut that you are in.

Gather All of Your Bills

Find out what creditors are giving you a hard time. Put them in order on a table from the most important to least important. Contact the first creditor to see if you can lower your interest rate. If the debt is already with collections, the collection agency may arrange a payment plan. Sometimes, the collections agency will settle the debt, so that you can pay a lower amount, to help you pay it off sooner. Once you pay off one bill, do the same thing for the next bill until each bill is paid out.

Consider Paying More Than The Minimum

While you are paying on your debts, you may want to pay more than the minimum. It will eliminate the interest and help you to pay the debt off sooner. If you get paid more than once each month, pay on the debt each pay period. Since you are just paying on the one bill with your rent and utilities, it is likely that you will have extra money on hand to pay extra on the bill each month.

Visit Credit Card Marketplaces Online

There are credit card marketplaces that allow people to get credit cards for excellent to bad credit. Before you decide to apply for a credit card, make sure that all of your debts are paid off. You will have to apply for a credit card for bad credit, if you are in the market to get a credit card. Most credit cards for bad credit have fees that are taken out of the credit amount that you will get approved for. By paying the credit card on time each month will allow you to get a credit increase. Also, your credit score will increase over time since you are paying the credit card on time.

Rent Merchandise at a Rental Store

Rent-to-Own stores are available in almost every city. In order to rent merchandise, you have to have a valid driver’s license, pay stub to show that you have an income, and completion of a rental application. There is no credit check, but by paying on time, it will show on your credit report that you are a good payer. To make it easier for yourself, just rent one item, so that it does not become a struggle for you to make your payments.

Ask Your Bank For a Loan

Banks that you deal with on a regular basis will be more than happy to make you a loan. They may still check your credit history. If you have been paying all your other debts on time, it will show it on the computer. To make it look even better for you, you may want to wait a year until you apply for a loan with your bank. That will give you enough time to rebuild your credit and the loan officer will see that you have been a good payer for a year.

Buy The Car That You Want

Visit a car dealership to see if you can get the car that you want. Most car dealerships have in-house financing, which will make it easier for you to get approved. Even if your credit is good enough to get approved for the full loan, your monthly payments can be cheaper by having a down payment. You should at least have $500 on hand as a down payment.