5 Effective Ways To Rebuild Your Credit

Get Your Credit Report and Score

This is one of the first steps you should take in your credit-rebuilding journey. Knowing where you stand credit-wise and check out for debt-pending will make the next steps less frustrating. There are websites like https://maritimetrustee.ca/ that will provide you with the financial details you need with your card. There is also another credit score that you want to find out about and it’s called your FICO score. Your FICO score is what most lenders & banks use to qualify you for loans and/or credit cards, etc. You normally have to pay to get your FICO score, but the US government made it a federal law that at least once a year you can get a free copy of your credit report. You can take advantage of that if you haven’t already for the year so you can start your credit-rebuilding journey off right.

Secure Credit Cards

Secure credit cards are a game changer when it comes to rebuilding your credit. Secure credit cards work like regular credit cards the only difference is that you have to pay a cash deposit upfront to guarantee your credit line. For example, if you want a $300 credit limit on a secured credit card you would have to pay $300 to the credit card company and they will add it to your secured card. Then you can use it like a regular credit card. They are awesome because unfortunately when you have bad credit or no credit you will not qualify for most regular unsecured credit cards. Having credit cards as a part of your credit portfolio will help your gain access to more credit. Eventually, once you build your credit up to a certain level you will be able to get access to unsecured credit lines, etc.

Dispute Credit Report Errors

Doing this is also one of the key steps necessary to rebuild your credit that everyone is not aware of. There are usually tons of mistakes and errors on your credit report that are reflecting badly on your overall score. For instance, you can dispute things on your credit report for things like the misspelling of your name, wrong address, etc. Once you clear those things off of your report it’s like giving yourself a clean slate to work with. With that clean slate, you can work on other parts of your credit-rebuilding process. Some of the work that has to be done is tedious and time-consuming but it’s worth it for better credit.

Become An Authorized User On Another Person’s Card

This tip works if you’re lucky enough to know someone with a good credit history and are in good standing with their credit cards. If so you can ask that person to add you as an authorized user on their credit card or cards. An authorized user is someone whose been added to a credit card account by the card’s owner also known as the primary cardholder. As an authorized user you can make purchases with the credit card as if it’s your own. You will reap the benefits of that primary card holder’s good credit even if you decide not to use your authorized user card as long as they pay their credit card bills responsibly.

Be Patient

Last but not least be patient! Rebuilding your credit will not happen overnight- it is a process. As long as you stay dedicated and consistent you will see positive changes like the ones listed here. Don’t get frustrated by some of the headaches that come along with rebuilding your credit, but the prize at the end of it all is a better credit report and score. Plus you will open up a world of possibilities for yourself by having good credit. So go out there and get the job done! It’s worth all the hard work you will put in.