AZCLG a consumer rights firm located in Tempe

10 Ways to Rebuild your Credit

10_Ways_to_rebuild_your_creditHave you just went through a financial hardship? Divorce, foreclosure, bankruptcy, or maybe a job loss? Think  that there is no hope for you to ever have good credit again? Well, think again. Having good credit is possible for you to have again, it is something that you will have to work towards. It all begins here. Follow these 10 steps to help you rebuild your credit.

  1. Check your credit report to see where you stand financially. Dispute any false accounts.
  2. Write a budget—and stick with it.
  3. Open a checking and savings account if you do not have one.
  4. Arrange to catch up on any behind payments. Contact companies to see what you can do to help get back on track.
  5. Pay all bills from this day forward ON TIME.
  6. Start practicing living within your means—save for emergencies and big purchases.
  7. Get a secured credit card. A secured card functions essentially like a debit card in that you pay the bank the money beforehand, but your payments are reported to all 3 major credit bureaus.
  8. Get a small installment loan to help rebuild your credit. Keep it low and pay consistently on time.
  9. Avoid finance companies. Remember, finance companies exist to make a profit. Instead of being swayed by debt consolidation offers, focus on maintaining your budget, putting money into savings, and slowly building up the limit on your secured card.
  10. 10. Keep existing cards open.  This might seem to go against what you are doing, but by keeping your old credit card.  Your overall credit limit and account age affect your credit score.  They will also help lower your debt utilization ratio and raise your average account age. Do this ONLY if you can resist the urge to use them.

No matter what types of financial hardships you may have faced, there is hope at the end of the tunnel.  With a little planning, careful spending, and consistency in your finances you CAN have good credit once again.

10 Ways to rebuild your credit
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My firm has 3 goals – be cost effective & efficient, make complicated things simple, and change the way people think about attorneys. We do this by offering flat rates with payment plans, educating our clients, and by encouraging everyone to ask us questions to better understand what we do & why we do it. I am a credit attorney and I love helping people with debt and credit legal issues.

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