Remember communication and early intervention are key elements to success.
Former creditors with whom you have had a good payment record may be willing to extend you credit to re-establish credit.
Always carefully review credit card offers, and DO NOT acquire too many. Normally, one or two cards should suffice.
Secured loans are loans whereby a tangible item, such as a car or a motorcycle, can be “attached” (taken if you don’t repay the loan).
Remember, in the event of default on a secured loan, the item that is attached may be repossessed in the event of non-payment.
A secured credit card is a card whereby you have funds available; say $500, to secure a credit card with a $500 credit limit. Because not all secured credit card issuers report to credit reporting agencies, always be sure to ask if they do before taking out a secured credit card to start restoring your credit.
Co-signers are persons who are willing to sign with you on a credit or loan application. Remember, in the event of non-payment on either party’s part, both persons are equally responsible. In the event of non-payment, both party’s credit rating is damaged.
Do not use “credit repair” companies. They will promise the world, take your money and may even further damage your credit.
Together, all of these tips may help you to slowly, but surely, rebuild a good credit history. Be patient because it will take time and additional effort.
Now that you are familiar with several tips for restoring your credit, let’s talk about the necessary action steps.
To begin, follow the points listed on this and the following slide.
As indicated by the first item listed, it is critical that you know exactly how much you owe and to whom. Then, given this information, prepare a realistic spending plan.
Once you have a handle on your debts and a spending plan in hand, begin contacting creditors to work out an agreement or payment arrangement.
Throughout the process, explore possible sources of additional money.
Don’t give up. Its hard work, but it will be worth it in the long run.
