Rebuild Credit to Recover From Bad Credit Ratings
It is true that it takes time to get into debt over your head, but it is also true that it takes time to rebuild bad credit. Many people believe that the only way to rebuild your credit score is to pay off all your current credit, and not to even think about obtaining new credit, but that isn’t the case. Credit-yogi.com would like to show you the best way to rebuild your credit score and credit history which is to work on establishing a payment plan with all your current creditors while at the same time, correct your credit report, and get modest new credit accounts and repaying them on time as well.
There are several things you should look at when you are looking for tips for rebuilding credit:
- Consider hiring a credit agency to help you
- Establish a repayment plan with existing creditors
- Get New Credit, and Repay it Promptly
Consider Hiring a Credit Agency to Help You
There is a lot of bad hype out there when it comes to the services one can hire to help you find ways to rebuild your credit, but the truth is most of us wouldn’t consider rebuilding the motors on our cars. Instead, we would go to someone who was qualified, experienced, and had a proven track record when it came to doing a good job rebuilding motors, and we would get them to do it for us. By the same token, credit services employ experts to determine if your credit report is accurate, repair inconsistencies, act as a liaison between you and your creditors to get the best terms for repayment, and to lend us their expertise to successfully rebuild our credit. Yes, you have to be sure you are hiring a legitimate agent qualified to do the job, just like you would if you were hiring a mechanic to rebuild your motor, but once you are, they can save you a lot of headaches, time, and money.
Establish a Repayment Plan With Existing Creditors
The most common question people struggling to rebuild credit ask is, “how long does it take to rebuild your credit?” It took you a while to get in debt, and it will take a while to get back on your feet again. Most experts say that it takes between 1 and 2 years to get your credit score back where it needs to be. That is why it is essential to start now. The first step is to negotiate a settlement with creditors. Once you have negotiated a repayment plan, it is essential that you make your payments on time, and not to increase your balances while you are doing it.
Get New Credit, and Repay it Promptly
You must pay off existing credit, but to re-establish credit, you need to get new credit and pay it off promptly too. Some ways to do this, even if you have bad credit is to rebuild your credit with a credit card. You can get a secured credit card regardless of your credit score. Just be sure to get one that reports to all 3 major credit bureaus. Become a member of a credit union, and get a small installment loan. That will provide a combination of different credit types on your credit report. Get a retail credit card. Many retailers offer cards to those with less than perfect credit. Become an authorized user on the credit card of someone you know, such as your parents. Every time their credit is reported, yours will be too, even if you never use the card. Finally, keep your account balances low. Between 10 to 30 percent of your credit limit is sufficient to show that you are using the accounts and repaying them on time.
Just remember, getting help from credit-yogi to rebuilding credit after bankruptcy is a smart choice, so why wait? Take advantage of the easy tools provided here, and get advice on how to get started today!