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6 Steps to Rebuilding Credit

Your credit is extremely important when trying to assure lenders that you're a good credit risk. Take these steps to build the best credit record you can - before you need it.

1. Open checking and savings accounts.

Lenders want to know you have a checking account available to pay bills. A savings account indicates you are putting aside something for the future.

2. Get a copy of your credit report.

Most lenders base their lending decisions on credit worthiness. Obtaining and reviewing a copy of your credit report can help you understand how you measure up to lender's standards.

3. Correct any errors or omissions on your credit report.

Some credit reports include errors or out-of-date information. If you find errors on your credit report, call the credit reporting agency.

4. Collect positive information about your payment habits.

Collect positive information about your payment habits. The more positive information you provide about yourself the more comfortable a lender may feel about granting you credit. If you've borrowed money before, get positive confirmation from the lender that you've repaid the debt.

5. Apply for credit.

Apply For Credit Consider applying for a small loan at your local bank. Apply for a secured credit card. You deposit a certain amount at a bank. In return, you are issued a Visa or Master card with a credit limit equal to the amount of your deposit.

6. Once you have credit, use it wisely.

Once you have credit, use it wisely. Charge small amounts on each card. Don't max-out your credit cards. Once you have been approved for one credit card or loan, don't go out apply for several more. Pay your bills on time. ALL THE TIME.

Credit Reporting Agencies

Equifax: 800.685.1111
Experian: 888.397.3742
Trans Union: 800.888.4213