how do i rebuild my credit history?

Answer 1

i'm in the process of doing that. what i have done is get a credit card first. (capital one is good for bad credit people) use it for a monthly purpose. (mine is gas becasue of my line of work it is also tax deductible). Then have it set up to automatically pay every month. once that happens, you'll get offers from other cards and do the same thing. for instance cell phone bill, or car insurance. make sure to do automatic recurring bill pay for the full balance so it doesn't mess your credit up more than it already is. and also, you don't have to remember every month to pay.

Answer 2

The best way to rebuild credit is to pay your bills ON TIME and pay a little extra and NOT carry UN necessary debts. Pay your bills with one good credit card and then pay off the balance off every month. This includes paying you phone, cable and any other bills you have. You credit rating will be rebuilt and in great standing in 6 to 12 months. Usually lenders check back on the past 6 months, this will help you obtain a home loan and auto loans at a low interest rate. If you have high debt now go to consumers credit counseling counseling, they are a non-profit agency which helps consumers to repair their credit. They work with your creditors and will lower the bills and you pay one monthly payment to consumer credit counseling, until it is all paid off. This is also a great way to rebuild your credit. Best Wishes!

Answer 3

I'm in this situation right now and have received some advice that might help you.
I filed bankruptcy two years ago. I didn't know that because I bought my car five years ago that the fact I've never missed a car payment doesn't even show up on my credit report because anything I started paying on before my bankruptsy gets erased.
I can't get a gas card.
I was informed that the only way I can improve my credit is to make a purchase, like a car. There are loan companies that will give me money to buy a car, but they'll charge me super high rates. If I make payments on time for six months I earn points on my credit score and so the loan company will consider refinancing, giving me a better rate.
it sucks to pay higher rates, but you got to bite the bullet.

Answer 4

To avoid getting into financial problems in the future, you must understand your flow of income and expenses. Some people call this making a budget. Others find the term budget too restrictive and use the term spending plan. Whatever you call it, spend at least two months writing down every expenditure. At each month's end, compare your total expenses with your income. If you're overspending, you have to cut back or find more income. As best you can, plan how you'll spend your money each month.

You need to have at least 6 month of payments on time to each of your creditors, keep up the good work and it shows good faith, your plan to make it your priority to increase your credit worthiness, and at the same time lowering your loans, credit card balances, do not charge on these accounts and do not refinance during this time.. it will take another 18 months for this cycle to complete. At the end of 2 yrs. with not new accounts and all accounts you have are being paid down or off. Your credit score will go up, you will have at that time proved your credability. If you plan on a large purchase such as a new automobile or home, this proceedure will aide in your securing your new loan or mortage.

Answer 5

Pay your bills on time every month, and pay more than the minimum amount.

Don't have a lot of credit card accounts open. You only need 2 or maybe 3 at the most. A lot of people only have 1 card. Don't play the game of having multiple cards because each one offers a different benefit - cash back, airline miles, educational points, etc.

In general, don't bother with the "cash back" kind of cards. They charge you higher interest rates up front in order to get the money that they send you. Why not just pay a lower interest rate, and have the money stay in your pocket in the first place?

Answer 6

vague question.

pay off collection accounts - pay in full, don't settle

pay off debts - don't pay anything 30, 60 or 90 days late

use 1 credit account on a montly basis and pay it off at the end of the month - really not that important that you pay it off, but rather it's important that you are using it.

Basically, pay your bills on time and wait. Also, stop applying for more credit - it doesn't help it just makes things worse.

things that will mess it up more
1. payments 30, 60 or 90 days late
2. collection accounts
3. charged off accounts
4. high outstanding balance in proportion to the credit limit
5. too many inquiries or attempts to gain new credit

a banker will want to see a good credit score and probably 2 years of steady employment and steady residence

also-they will look at your debt/income ratio
take all of your montly debt payments - rent, credit card bills, etc...exclude cable, power etc.... and divide it by your gross montly income then multiply by 100 - Get that number under 42 - the lower the better

Answer 7

Get your credit report so you can see everything on there.

Old stuff that you haven't paid off contact the company about a payoff settlement. It's generally half or less on the total you own. Get it paid off.

NOTE: You will be taxed on the write off amount when you do your taxes.

Make sure after you get the pay-off completed the company changes the status to all three credit reports.

Anything over seven years should fall off your report also. Get with the credit report people to pull those things off your credit.

Answer 8

Stop using credit cards and make a list of all the creditors you have. Figure out how much you can pay them each month and do so. Never be late on a bill, that is one of there main considerations when grading your credit. If all goes well you can turn it around in a year or two.

Answer 9

The best advice I can give you is to get completely out of debt. Don't what ever you do pay for a debt cleaning kit, because the only debt or errors than can be legally cleaned on your credit report are inaccuracy's. Don't go to a debt consolidation agency, basically when you go to buy a home you will be viewed on the same level as someone that has filed chapter 13. Read anything you can get your hands on by Dave Ramsey.

Answer 10

you could start rebuilding your credit by getting a credit card with a low limit and make your payments on time. WWW.fastcreditcardapprovals.com has all major credit cards with the lowest rates and great rewards, Good, bad or no credit they have the right card for you.